comprehensive annual financial report school district … · 2016-06-30 · comprehensive annual...

COMPREHENSIVE ANNUAL

FINANCIAL REPORT

School District of St. Johns County,

Florida

For the Fiscal Year Ended

June 30, 2016

Building CHARACTER

for a stronger community

CAFR for FY ended June 30, 2016 January 2017 of 202

St. Johns County School District

St. Augustine, Florida

Comprehensive Annual Financial Report

For the

Fiscal Year Ended June 30, 2016

Prepared By: Finance Department


This page was intentionally left blank.


I. INTRODUCTORY SECTION PageLetter of Transmittal……………………………….…………………………………….……………………………………………………………… 3Principal Officials - Elected…………………………………...……………………………………………………………………………………… 14Principal Officials - Appointed……………………………...………………………………………………………………………………………… 15Organizational Chart……………………………………………………………………..…………………………………………………………… 16

II. FINANCIAL SECTIONReport of Independent Auditor................................................................................................................................................................... 21Management's Discussion and Analysis………….……………………………………………………………………………......………………… 27

Basic Financial StatementsGovernment-wide Financial Statements:

Statement of Net Position……………………….…………………………………………………………………..……….………………………… 41Statement of Activities…………………….……………………………………………………………………………..……………………….…… 42

Fund Financial Statements:Balance Sheet - Governmental Funds………………………………………………………...…………………………………………..………… 44Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position…………….………………...………………… 47Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds…………………...…………………….… 48Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund

Balances to the Statement of Activities……………….……………………………………………………..………………...…...................... 50Statement of Net Position - Proprietary Funds……………………………………....…………………………………………………………...… 51Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds……………..…….……………………….…………… 52Statement of Cash Flows - Proprietary Funds…………...…………………………………………...……………………………...……………… 53Statement of Fiduciary Assets and Liabilities - Fiduciary Funds……..…………………………………………….……………………………… 54Notes to the Basic Financial Statements……………………………………………………………………...……………………………………… 57

Required Supplementary InformationSchedule of Revenues, Expenditures, and Changes in Fund Balance - Budget to Actual - General Fund

Legal Level of Budgetary Control……………………………………………………………………………………………..……..……………… 99Schedule of Funding Progress - Other Postemployment Benefits Plan………………………………………………………………………… 104Schedule of Proportionate Share of Net Pension Liability - Florida Retirement System……………………………………………………… 105Schedule of Contributions - Florida Retirement System…………………………………………………………………………………………… 106Schedule of Proportionate Share of Net Pension Liability - Health Insurance Subsidy Pension Plan………………………………………… 107Schedule of Contributions - Health Insurance Subsidy Pension Plan…………………………………………………………………………… 108Notes to Required Supplementary Information……………………………………………………………………………………………………… 109

Other Supplementary InformationCombining and Individual Fund Financial Statements and Schedules

Combining Balance Sheet - Nonmajor Governmental Funds………………………...………………...………………………………………… 114Combining Statement of Revenues, Expenditures, and Changes in

Fund Balances - Nonmajor Governmental Funds……………………………………………………...………………………...……………… 116Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual:

Major Funds:

Debt Service - Other Debt Service Fund …………………………………………………………………..…....……………………...…………… 121Capital Projects - Local Capital Improvement Fund ………..…...…………………………….……….…...……………………..……………… 122Capital Projects - Other Capital Projects Fund………………………………………...……………..…………………………………..………… 123

Nonmajor Funds:

Special Revenue - Food Service Fund…………………………..………..………………………………..………………………….…………… 124

ST. JOHNS COUNTY SCHOOL DISTRICTST. AUGUSTINE, FLORIDA

Table of Contents

COMPREHENSIVE ANNUAL FINANCIAL REPORTFISCAL YEAR ENDED

June 30, 2016


Other Supplementary Information (continued) PageSpecial Revenue - Other Federal Programs Fund…………………..………………...………………………….………………………………… 125Special Revenue - Federal Economic Stimulus Programs Fund…………………..………………...………………………….………………… 127Debt Service - SBE / COBI Bonds Fund……………………..…………….……………………………..………………………………………… 128Debt Service - ARRA Debt Service Fund………………………………..……….……………...…………………………………………………… 129Capital Projects - Public Education Capital Outlay Fund……………………..…………..….……..……………………………………………… 130Capital Projects - Capital Outlay & Debt Service Fund…………………………..………...…………………………………………….. ……… 131

Internal Service FundsCombining Statement of Net Position - Internal Service Funds………………………………..………………………………………………… 135Combining Statement of Revenues, Expenses, and Changes in Fund Net Position - Internal Service Funds…………………...………… 136Combining Statement of Cash Flows - Internal Service Funds………………………………………………………………….…………….… 137

Fiduciary FundsStatement of Changes in Assets and Liabilities - Fiduciary Funds - Agency Funds…….……………………...………………..…….……… 141

III. STATISTICAL SECTION (UNAUDITED) Table PageFinancial Trends Information:

Net Position by Component - Government-Wide ………...………………………….……………………………………………… 1 144Changes in Net Position - Government-Wide…………………….…..……………………………………………………………… 2 146Fund Balances of Governmental Funds………………………………………………….....………………………………………… 3 148Fund Balances of Governmental Funds and Entity-Wide Net Position……………………………..……………………………… 4 151Changes in Fund Balances of Governmental Funds…..………………..……………………..…………………………………… 5 152Summary of Revenues, Expenditures (by Major Object), and Changes in Fund Balances - General Fund…………………… 6 154

Revenue Capacity Information:

Governmental Activities Tax Revenues by Source…………………………………………………….………………………….… 7 156Assessed and Estimated Actual Value of Taxable Property…………………………………………………….…………………… 8 157Property Tax Rates – Direct and Overlapping Governments…………………………………………………..…………………… 9 158Principal Property Taxpayers………………………………………………………………………………...………………………… 10 159Property Tax Levies and Collections……………………………………………………………………….…………………………… 11 160

Debt Capacity Information:

Ratios of Outstanding Debt by Type……………………………………………..…………………………………………………… 12 161Ratio of Net General Bonded Debt Outstanding…………………………………………………..………………………………… 13 162Direct and Overlapping Governmental Activities Debt…………………………………………….……………..…………………… 14 163

Calculation of Legal Debt Margin on Bonded Debt…………………………………………………………………………………… 15 164Pledged Revenue Coverage…………………………………………………………………………………………………...……… 16 166Anticipated Capital Outlay Millage Levy Required to Cover Certificates of Participation Payments…………………………… 17 167

Demographic and Economic Information:

Demographic and Economic Statistics…………………………………...………………………..…………………………………… 18 168Principal Employers……………………………………………………..……………………….……………………………………… 19 169

Operating Information:

School Building Information & Full-Time Equivalent Enrollment Data………………………………..………..…………………… 20 170Number of Personnel……………………………………………………………………………...…………………..………………… 21 172Teacher Base Salaries……………………………………………………………………………..……………….…………………… 22 173

IV. SINGLE AUDIT SECTIONReport of Independent Auditor on Internal Control Over Financial Reporting and on Compliance and Other Matters

Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards……………………… 179Report of Independent Auditor on Compliance for Each Major Federal Program and Report on Internal Control Over Compliance

Required by the Uniform Guidance………………………………………………………………………………………………………………… 181Schedule of Expenditures of Federal Awards………………………...………………………………...……………………...…………………… 184Notes to Schedule of Expenditures of Federal Awards………………...………………………………...……………………...………………… 185Schedule of Findings and Questioned Costs……..……………………..…………………………………………..……………………………… 186Summary of Prior Audit Findings and Collective Action Plan…………………………………...…………………………………………….. 188

V. OTHER REPORTSIndependent Auditor's Management Letter… ….………..……………...…………………………………………...……………………………… 191Report of Independent Accountant on Compliance with Local Government Investment Policies….….…….………...……………………… 193


INTRODUCTORY SECTION

This section contains the following subsections:

Letter of Transmittal Principal Officials – Elected Principal Officials - Appointed Organizational Chart

1CAFR for FY ended June 30, 2016 January 2017 of 202

December 7, 2016

Dear Chairman, School Board Members and the Citizens of St. Johns County:

State law requires that all local governments publish, after the close of each fiscal year, a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States of America (GAAP), and audited in accordance with governmental auditing standards generally accepted in the United States of America (GAAS). Pursuant to this requirement, we hereby issue the Comprehensive Annual Financial Report (CAFR) of the District School Board of St. Johns County, Florida (District) for the fiscal year ended June 30, 2016. The accompanying report includes all funds of the District, the St. Johns County School Board Leasing Corporation, Inc. (Leasing Corporation), and the St. Johns County Education Foundation, Inc. (Foundation). The Leasing Corporation was formed by the School Board to be the lessor in connection with financing the acquisition and/or construction of certain educational facilities, and is considered to be a blended component unit. The Foundation is a not-for-profit corporation organized and operated as a direct-support organization under Section 1001.453, Florida Statutes, to raise funds; receive, hold, invest and administer property; and to make expenditures for the benefit of the District. This report consists of management’s representations concerning the finances of the District. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the District has established a comprehensive internal


control framework that is designed both to protect the government’s assets from losses, theft, or misuse and to compile sufficient reliable information for the preparation of the District’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the District’s comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements will be free from material misstatement. As management, we assert that to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

The accounting firm of Cherry Bekaert LLP, has audited the District’s financial statements. The goal of the independent audit is to provide reasonable assurance that the financial statements of the District for the fiscal year ended June 30, 2016, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded that there was a reasonable basis for rendering an unmodified opinion that the District’s basic financial statements for the fiscal year ended June 30, 2016, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report.

The independent audit of the financial statements of the District was part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The District is required to undergo an annual Single Audit in conformity with the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (“Uniform Guidance”).

Those standards and the Uniform Guidance require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards.

Information related to this Single Audit, including the schedule of expenditures of federal awards; findings and questioned costs; summary of prior audit findings; the independent auditor’s reports on the system of internal control and on compliance with applicable requirements, are included in the Single Audit section.

GAAP requires that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The MD&A can be found immediately following the independent auditor’s report.


PROFILE OF THE DISTRICT

The District and its governing board were created pursuant to Section, Article IX, Section 4, of the Constitution of the State of Florida. The District is an independent taxing and reporting entity; managed, controlled, operated, administered and supervised by the district school officials in accordance with Chapter 1001, Florida Statutes. The School Board consists of five elected officials responsible for the adoption of policies, which govern the operation of the District’s public schools. The School Board appoints the Superintendent who is responsible for the administration and management of the schools within the applicable parameters of Florida Statutes, State Board of Education Rules and School Board policies. Section 1010.01, Florida Statutes, requires each school district to prepare and maintain financial records and accounts as prescribed by laws and rules of the State Board of Education (State).

The geographical boundaries of the District are those of St. Johns County. During the 2015-16 fiscal year, the District operated 40 schools, including 18 elementary schools, seven middle schools, seven high schools, three K-8 schools, one alternative education center, three juvenile justice facilities and a virtual school. Additionally, the District sponsored five charter schools during the fiscal year ended June 30, 2016; however, the charter schools do not meet the criteria for being included as a component unit in the District’s financial statements. In the 2015-16 fiscal year, the District provided educational opportunities to 36,240 unweighted full-time equivalent students through the following programs: basic K-12, exceptional student education, alternative education, early childhood, dual enrollment, career academies and accelerated programs, virtual instruction, career and technical, and adult education. The projected enrollment for the 2016-17 school year is 37,350 unweighted full-time equivalent students.

The District receives the majority of its operating funds through a State funding formula that is intended to equalize funding received from state and local property tax between districts within the state. Charter schools operating through a contract with the District are provided with their proportionate share of these funds, based on the number of full-time equivalent students enrolled at the charter school. Although charter schools receive public funds, they operate independently of public school districts. Each charter school has its own board of directors and administrators. Each of the charter schools operating during the 2015-16 school year within the District provided an alternative choice with a specific educational focus. Charter Schools may also receive grants and donations that do not pass through the District’s financial system.


GENERAL DESCRIPTION AND LOCATION

St. Johns County (County) encompasses approximately 608 square miles of land along the Atlantic Ocean and is located in North Florida’s east coast. In relation to other areas, the County is approximately 40 miles south of Jacksonville, 100 miles northeast of Orlando and 305 miles north of Miami. Duval County borders to the north, Flagler County borders to the south while Clay and Putnam counties form the western boundary.

The County is home to St. Augustine, the nation’s oldest city. Founded by the Spanish in 1565, St. Augustine has been the oldest continuously occupied European settlement in the continental United States. The city boasts a multitude of noteworthy historic sites and buildings; including the Plaza de la Constitución, located in the heart of downtown; the Castillo de San Marcos, a remarkable coquina structure built by the Spanish in 1672; and the turn-of-the-century resort, Hotel Ponce de Leon (now Flagler College) which showcases the era’s remarkable architectural design, including the world’s largest collection of Louis Comfort Tiffany stained-glass windows.

Just minutes from the historic downtown district, St. Johns County’s 40 miles of beaches offer some of the best recreational and wildlife viewing opportunities in the state of Florida. The county’s wildlife is comprised of a variety of species, including the endangered sea turtles.

From a recreational standpoint, golf is a cornerstone of St. Johns County. The World Golf Hall of Fame and Museum complex and two nationally recognized public courses, Slammer & Squire and the King & Bear are featured in the central part of the county. TPC Sawgrass, a Top 10 Pete Dye course and home to the annual PGA Tour event THE PLAYERS Championship, is located in the northern part of the county.

Complementing its history, scenic beaches and recreational offerings are the county’s residential developments. Nocatee, a planned-community located in Ponte Vedra, is now ranked the third best-selling community in the nation and the first best-selling community in the county.

ECONOMIC CONDITIONS AND OUTLOOK

The county’s economic base is diverse and primarily tourism-related. Success in economic development ensures St. Johns County’s long-term financial ability to provide ongoing quality services and infrastructure and enhance the quality of life for its residential and corporate citizens. An excellent system of public education is a significant factor in attracting new business, industry and residents to the County.

Socioeconomic indicators are above average with a per-capita income of $58,379 and a median household income of $65,575, compared to the state’s per-capita of $26,499 and median of $47,212. The unemployment rate in St. Johns County as of June, 2016, was 3.7 percent, which is the second lowest rate in the state of Florida.


Major employers in St. Johns County are the District, Flagler Hospital, St. Johns County government offices and Florida School for the Deaf and the Blind, as well as the nationally recognized companies Northrop Grumman, Ring Power Corporation and the PGA Tour.

There are 77,443 households within the county, with an estimated population of 226,640 for 2015, an increase of 19.3% over the last five years. The surge in population earns the county 16th place on the U.S. Census Bureau’s “List of 100 Fastest Growing U.S. Counties with a Population of 10,000 or More”.

MAJOR INITIATIVES

District Goals On April 12, 2016, at the regular School Board meeting, the Board approved the adoption of the 2016-2021 Strategic Plan, aligning all of its strategic goals around the vision and mission of the District: Vision: All students will choose a learning path that leads to a well-rounded graduate who

demonstrates good character and leadership.

Mission: The St. Johns County School District will inspire good character and a passion for

lifelong learning in all students, creating educated and caring contributors to the world.

In order to support the District vision and mission, the District adopted nine core values. These core values are:

Trustworthiness, respect, responsibility, fairness, caring, and citizenship are essential to the well-being of individuals and society.

All individuals have intrinsic value. Every individual can contribute something of worth to society. Individuals are responsible and accountable for their choices and decisions. In order to grow and thrive, individuals need caring relationships and nurturing

environment. Supportive family relationships are the foundation of the community. High expectations lead to higher performance which, in turn, empowers the individual

and strengthens society. Continuous learning is a lifelong process that is essential to a productive and enriched

life. A safe and orderly environment is conducive to learning.

Aligning with the vision, mission and core values of the strategic plan, the Board developed four strategic goals, with various strategies from which all initiatives and individual goals are being developed around. The four over-arching strategic goals are:

College and Career Readiness Student Success Goal 2021: All students will graduate with a skill set prepared for college or a career.

Flexible Learning and Success Goal 2021: All students will have the choice and flexibility to customize their learning path.


Well-Rounded Student Success Goal 2021: All students will have the opportunity to demonstrate leadership and character, strengthen their life skills and participate in service to the community.

Growth Management Success Goal 2021: St. Johns County School District will proactively manage systemic growth.

The tactical plan to support goals are:

Academic and Student Services Create opportunities that empower students to build good character, life, social

and leadership skills. Develop and implement a K-12 initiative to fully implement STEM concepts. Build literacy skills that empower students to communicate effectively. Build capacity to fully support the academic, wellness and safety needs of all

students.

Operations Develop a K-12 continuum of technology integration, including necessary network

infrastructure, to ensure teachers are well equipped to implement technology in the classroom.

Continue to design and construct schools that accommodate growth while maintaining high quality programming with an intentional student-focused environment.

Continue to improve district-wide safety and security measures. Continue to improve and upgrade operational systems and services to better meet

the needs of students and staff.

Community Relations Continue to enhance technology to effectively communicate with families,

students, employees and community members by researching and seeking the best available communication methods.

Continue to build a culture of character by further integrating CHARACTER COUNTS! Initiatives and related programs throughout the St. Johns County School District while expanding into the community at large.

Continue to seek and expand business and community partnerships to provide more opportunities for students.

Human Resources Using a comprehensive recruitment approach, Human Resources will recruit high-

quality personnel in all employee groups. Align all professional development opportunities so all employees can grow

professionally while performing at their highest potential. Provide ongoing ethics and professional conduct training to all employee groups.


Superintendent and School Board Align all decision-making in the best interest of students. Continue to influence state legislation and set policy at the local level to further

the mission, vision and goals of the school district. Maintain a nurturing and supportive environment by continuing a culture that

fosters teamwork and collaboration that emphasizes shared values, integrity and loyalty.

The implementation of the 2016-2021 Strategic Plan will be incorporated within annual capital or operational budgets with a high expectation of success.

Capital Outlay Program The District’s availability of funds for capital projects continues to be restricted. Currently the District is growing at a rate of 4.6 percent per year and has endured several years of declining capital revenue. In fact, the 2007-08 capital fund generated approximately $46.8 million. The same capital fund generated only $31.7 million in 2015-16. This disparity is due, in large part to the continuing negative impacts of previous years’ declining property values as a result of the housing market collapse and the related economic meltdown. More importantly, the Florida Legislature reduced the allowable millage level from 2.0 mills to 1.75 mills in 2008-09 and then again to 1.5 mills in 2009-10. It currently remains at 1.5 mills for 2015-16. For the foreseeable future, capital and maintenance projects must be prioritized with a focus on critical needs only. The District will be forced to move away from both being prepared for growth and using preventive maintenance (in order to minimize costs) to meeting only critical needs. Class Size Reduction Amendment In November 2002, the voters of Florida amended the State Constitution to limit class size. The amendment established the maximum number of students in core-curricula courses assigned to a teacher in each of the following three grade groupings: (1) pre-kindergarten through grade 3, 18 students; (2) grades 4 through 8, 22 students; and (3) grades 9 through 12, 25 students. Based on the annual review for the 2015-16 fiscal year conducted by the Florida Department of Education, the District complied with constitutional maximums in all schools and classrooms.

Health Insurance The District continues to monitor health insurance costs and implement plan changes to the District’s health insurance plan to ensure the plan’s fiscal soundness. In both fiscal years 2014-15 and 2015-16 the District has increased the combined employer contribution and employee premium by a total of 12 percent, respectively, and increased the retiree premium by 18 and 12 percent, respectively. The District’s contributions to the plan continue to put a strain on its operating funds.


ACCOMPLISHMENTS

One of the ways to judge a school district is to compare the results of its students on national and statewide testing platforms. The District’s students have performed remarkably well based on those various tests and their results are noted below.

St. Johns County students outperformed the state average as well as the national average on both the 2016 SAT and the 2016 ACT. Students also outperformed all other Florida students on the 2016 AP tests. In addition, St. Johns students outperformed the state average in the 2016 Readiness for College tests in math, reading and writing, as individual subjects, as well as all three of those subjects combined.

For the 2015-16 school year, St. Johns County students ranked first in all tested grades (3-10) in reading; ranked first in grades 4, 7 and 8, tied for first in grades 3 and 5, and was ranked second in grade 6 for math; and ranked first in the two tested grades of 5th and 8th for science.

Furthermore, our students ranked first in the state end of course exams in Civics, Algebra I, Geometry, Biology I and U.S. History; and, was ranked second in Algebra II.

Finally, St. Johns County students have been first in the state, out of 67 school districts, in total school accountability points for the past eight years, and St. Johns County School District is one of only three school districts in the state to receive an “A” grade for twelve consecutive years.

FINANCIAL INFORMATION

Long-term Financial Planning St. Johns County School District continues to carefully monitor its financial resources to make reductions in expenditures to stabilize operations and to accumulate needed reserves to help balance the budget. Maintaining adequate fund balances, solid debt ratings, and fiscal restraint are critical success factors in this endeavor. In addition, long-term financial planning needs are addressed in the Five-Year District Facilities Work Plan encompassing all construction, maintenance and facility renovations. This Facilities Work Plan is an intricate part of long-term financial planning and is updated on an annual basis. The slow recovery from the economic recession, per-student funding from the State below 2007-08 funding level, student growth, class size reduction initiative, professional development training for the teachers, cost increases for health care, and the continuing need to pay competitive teacher salaries, puts enormous pressure on the District’s operating fund.

If the District does not see a significant improvement in per-student funding in the future, then it will be necessary to once again reduce operating and capital expenditure budgets.

At June 30, 2016, the unassigned fund balance in the general fund totaled $5,802,555. In addition, the District has established an economic stabilization arrangement in Board Rule


7.01, School District Budget System, which provides that the Board shall commit an amount equal to three percent of its estimated revenue from the first Florida Education Finance Program calculation under a stabilization arrangement for use in an emergency. The District classified the stabilization arrangement monies as committed fund balance and defines the circumstances that constitute an emergency are non-routine in nature. Additional information on the District’s fund balance categories and related policies is discussed in the notes to the financial statements, specifically Note I.F.11 and III.M.

At June 30, 2016, the stabilization balance was $7,853,547. In total, the unassigned fund balance and committed fund balance for economic stabilization represent five percent of total general fund revenues.

On November 3, 2015, the citizens of St. Johns County voted to approve a one-half cent local sales surtax to be used for capital improvements within the school district. Critical projects include those related to new construction, renovations, technology, and safety and security. The sales tax went into effect on January 1, 2016, and is expected to generate approximately $13 million per year. As of September 2016, the District met its expected sales tax revenue of $13 million and anticipates an estimated $4.2 million by the end of the calendar year.

On February 3, 2016, the District issued Sales Tax Revenue Bonds Series 2016, in the amount of $50,472,720, as authorized by Chapter 212, 1001, and 1013, Florida Statutes, and as authorized by a resolution of the District School Board, dated January 12, 2016. These bonds were issued to finance the cost of construction and equipping of a new K-8 school and a new elementary school. These bonds are secured by the one-half cent local sales surtax.

Budgetary Controls The District follows procedures established by Florida Statues and SBE Rules in establishing budget balances for governmental funds. The objectives of the District budgetary controls are to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Board. Activities of all governmental funds types are included in the annual appropriated budget. The level of budgetary control (that is the level at which expenditures cannot exceed the appropriated amount) is established at the object level (e.g., salaries, purchased services, and capital outlay) within each activity (e.g., instruction, student personnel services, and school administration) and may be amended by resolution at any Board meeting prior to the due date for the annual financial report. Budgetary information is integrated in the accounting system and, to facilitate budget control, budget balances are encumbered when purchase orders are issued. Appropriations lapse at fiscal year-end and encumbrances outstanding are honored from the subsequent year’s appropriations.

Internal Controls District management is responsible for designing and maintaining internal controls to ensure that the assets of the District are protected from loss, theft or misuse, and that accounting


THE SCHOOL BOARD OF ST. JOHNS COUNTY, FLORIDA

LIST OF PRINCIPAL OFFICIALS – ELECTED

Mrs. Beverly Slough District 1 Member since 11/02 Current term expires 11/18

Mr. Thomas L. Allen, Jr., Chair District 2 Member since 11/96 Current term expires 11/20

Mr. Bill Mignon District 3 Member since 11/06 Current term expires 11/18

Mrs. Kelly Barrera District 4 Member since 11/14 Current term expires 11/18

Mr. Patrick Canan District 5 Member since 11/12 Current term expires 11/20


THE SCHOOL BOARD OF ST. JOHNS COUNTY, FLORIDA

LIST OF PRINCIPAL OFFICIALS – APPOINTED

Joseph G. Joyner, Ed.D. Superintendent Martha Mickler Assistant Superintendent Brennan Asplen Deputy Superintendent for

Academic and Student Services

Nicole Cubbedge Executive Director Planning and Government Relations

Michael Degutis Chief Financial Officer Cathy Hutchins Associate Superintendent for Human Resources Christina Langston Chief of Community Relations Cathy Mittelstadt Associate Superintendent

Student Support Services Bruce Patrou Chief Information Officer Paul Rose Executive Director

Facilities and Operations Dawn Sapp Associate Superintendent

Curriculum and Instruction Scott Sherman Associate Superintendent

Accountability and Intervention Services


St. Johns County School District

SCHOOL BOARD

SUPERINTENDENT OF SCHOOLS

Dr. Joseph G. Joyner

Associate Superintendent Accountability

& Intervention

Services Scott Sherman

Associate Superintendent

Curriculum &

Instruction Dawn Sapp

Executive Assistant

Vicki Moody

Associate Superintendent Student Support

Services Cathy Mittelstadt

ExecutiveSecretary

Miriam Testasecca

Chief of

Community Relations

Christina Langston

Associate Superintendent

Human Resources

Cathy Hutchins

Board Approved August 9, 2016

Assistant Superintendent Martha Mickler

Deputy Superintendent Academic

& Student ServicesBrennan Asplen

Deputy Superintendent Operations

Vacant

Executive Director Planning

& Government

Relations Nicole

Cubbedge

Executive Director Facilities

& Operations Paul Rose

Chief Information

Officer Bruce Patrou

Chief Financial Officer

Michael Degutis

Administrative Assistant

Pat Alexander

16C

AFR

for FY ended June 30, 2016 January 2017

of 202

FINANCIAL SECTION


Report of Independent Auditor Management’s Discussion and Analysis Basic Financial Statements Notes to the Financial Statements Required Supplementary Information Notes to the Required Supplementary Information Other Supplementary Information – Combining and

Individual Fund Statements and Schedules


Report of Independent Auditor


Report of Independent Auditor

The Honorable Members of the School Board St. Johns County School District St. Augustine, Florida Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the St. Johns County School District (the “District”), as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the discretely presented component unit nor the fiduciary funds, which represent 100 percent of the component unit assets, net position, and revenues and 12 percent of the assets and 39 percent of the liabilities of the aggregate remaining fund information in the accompanying financial statements. Those financial statements were audited by other auditors whose reports have been furnished to us, and our opinions, insofar as they relate to the amounts included for the fiduciary funds and the discretely presented component unit, are based solely on the reports of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.


Opinions In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the St. Johns County School District, as of June 30, 2016, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 27 through 38, and the required supplementary information presented on the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do no express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The introductory section, combining and individual fund statements and schedules, and statistical section, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards on page 188 is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the consolidated financial statements. The combining and individual fund statements and schedules and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us and the other auditor. In our opinion, the combining and individual fund statements and schedules and the schedule of expenditures of federal awards are fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.


Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 2, 2016 on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance.

Orlando, Florida December 2, 2016


Management’s Discussion and Analysis


MANAGEMENT’S DISCUSSION AND ANALYSIS

The management of the St. Johns County District School Board (District) has prepared the following

discussion and analysis of financial activities for the fiscal year ended June 30, 2016. It is intended to

provide a broad overview using a short-term and long-term analysis of the District’s activities based on

information presented in the financial report and fiscal policies that have been adopted by the School

Board (Board). The intent of this discussion and analysis is to assist the reader in focusing on significant

financial issues, provide an overview of the District’s financial activities, identify changes in the District’s

financial position, identify material deviations from the approved budget, and highlight significant issues

in the individual funds. The Management’s Discussion and Analysis (MD&A) is intended to highlight

significant transactions, events, and conditions and should be considered in conjunction with the District’s

financial statements and notes to financial statements found immediately following the MD&A.

FINANCIAL HIGHLIGHTS

Key financial highlights for the 2015-16 fiscal year are as follows:

The District’s total assets plus deferred outflows of resources exceeded its total liabilities plus

deferred inflows of resources at June 30, 2016, by $402,383,872 (net position). After deducting

investment in capital assets (net of related debt) and restricted net position, the District had a

deficit unrestricted net position of $118,656,185.

In total, the District’s net position increased $50,441,041, which represents a 14 percent increase

from the 2014-15 fiscal year. This increase is due to the one-half cent local sales tax receipts

and sales tax revenue bond proceeds.

The District’s total government-wide revenues of $386,817,563 were comprised of general

revenues of $331,344,430 or 86 percent of total government-wide revenues, and program specific

revenues from charges for services, operating grants and contributions, and capital grants and

contributions of $55,473,133 or 14 percent of total government-wide revenues. This compares to

the prior fiscal year with government-wide revenues of $338,051,123, which were comprised of

general revenues of $295,769,239 or 87 percent of total government-wide revenues, and charges

for services, operating grants and contributions, and capital grants and contributions of

$42,281,884 or 13 percent of total government-wide revenues.

The District’s total expenses for governmental activities of $336,376,522 were offset by program

specific revenues of $55,473,133. The remaining expenses were funded from general revenues

and fund balance. In the prior fiscal year, total expenses of $322,402,452 were offset with


program specific revenues of $42,281,884 with the remaining expenses funded from general

revenues and fund balance.

The District’s governmental funds reported a combined ending fund balance of $193,636,471, an

increase of $61,027,791 or 46 percent in the 2015-16 fiscal year in comparison with the prior fiscal

year’s balance of $132,608,680. This increase is due to the one-half cent local sales tax receipts

and sales tax revenue bond proceeds.

The General Fund total fund balance was $43,084,215 as of June 30, 2016, and represents a

decrease of $5,145,523 or 11 percent as compared to the prior fiscal year’s balance of

$48,229,738.

The assigned and unassigned fund balance of the General Fund, which represents net current

financial resources available for general appropriation by the Board, totaled $33,392,273 at June

30, 2016 or 12 percent of total general revenues. In the 2014-15 fiscal year, the assigned and

unassigned fund balance in the General Fund was $37,870,900 or 15 percent of total General

Fund revenues.

The District’s investment in capital assets (net of accumulated depreciation) increased by

$10,032,322 or 2 percent, from its balance of $522,169,699 at June 30, 2015, to $532,202,021 at

June 30, 2016, mainly due to the donation of land, expansion projects, and new construction due

to continuing growth.

The District’s capital asset-related long-term debt increased by a net amount of $34,382,289, or

26 percent from its balance of $130,692,953 at June 30, 2015 to $165,075,242 at June 30, 2016,

mainly due to the issuance of $42,755,000 of Sales Tax Revenue Bonds, Series 2016.

OVERVIEW OF FINANCIAL STATEMENTS

The basic financial statements consist of three components:

Government-wide Financial Statements

Fund Financial Statements

Notes to the Basic Financial Statements.

In addition to the basic financial statements, this report also contains required supplementary information

intended to furnish additional details to support the basic financial statements.

Government-wide Financial Statements

The government-wide financial statements provide both short-term and long-term information regarding

the overall financial position of the District, in a manner similar to those of a private-sector business.


These include a statement of net position and a statement of activities that are designed to provide

consolidated financial information about the governmental activities of the District presented on the

accrual basis of accounting, specifically:

The statement of net position provides information about the District’s financial position, its

assets and liabilities, and deferred inflows/outflows of resources, using an economic resources

measurement focus. Assets and deferred outflows of resources less liabilities and deferred

inflows of resources, equals net position, which is a measure of the District’s financial health.

The statement of activities presents information about the change in the District’s net

position and the results of operations during the fiscal year. An increase or decrease in net

position is an indication of whether the District’s financial health is improving or deteriorating.

The government-wide statements present the District’s activities in the following categories:

Governmental activities – This represents most of the District’s services, including its educational

programs: basic, vocational, adult, and exceptional education. Support functions such as

transportation and administration are also included. Local property taxes and the State’s

education finance program provide most of the resources that support these activities.

Component units – The District presents aggregate financial information for the St. Johns County

Education Foundation, Inc. Although a legally separate organization, the component unit is

included in this report because they meet the criteria for inclusion provided by generally accepted

accounting principles. Financial information for this component unit is reported separately from

the financial information presented for the primary government.

The St. Johns County School Board Leasing Corporation (Leasing Corporation), although also a

legally separate entity, was formed to facilitate financing for the acquisition of facilities and

equipment for the District. Due to the substantive economic relationship between the District and

the Leasing Corporation, the Leasing Corporation has been included as an integral part of the

primary government.

Fund Financial Statements

Fund financial statements are one of the components of the basic financial statements. A fund is a

grouping of related accounts that is used to maintain control over resources that have been segregated

for specific activities or objectives. The District uses fund accounting to ensure and demonstrate

compliance with finance-related legal requirements and prudent fiscal management. Certain funds are

established by law while others are created by legal agreements, such as bond covenants. Fund financial

statements provide more detailed information about the District’s financial activities, focusing on its most

significant or “major” funds rather than fund types. This is in contrast to the entity-wide perspective


contained in the government-wide statements. All of the District’s funds may be classified within one of

the broad categories discussed below.

Governmental Funds: Governmental funds are used to account for essentially the same functions

reported as governmental activities in the government-wide financial statements. However, unlike the

government-wide financial statements, the governmental fund financial statements focus on near-term

inflows and outflows of spendable resources, as well as balances of spendable resources available at

the end of the fiscal year. Such information may be useful in assessing a government’s near-term

financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial

statements, it is useful to compare the information presented for governmental funds with similar

information presented for governmental activities in the government-wide financial statements. By doing

so, readers may better understand the long-term impact of the government’s near-term financing

decisions. Both the governmental funds balance sheet and the governmental funds statement of

revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this

comparison between governmental funds and governmental activities.

The governmental funds balance sheet and statement of revenues, expenditures, and changes in fund

balances provide detailed information about the District’s most significant funds. The District’s major

funds are the General Fund, Debt Service – Other Debt Service Fund, Capital Projects – Local Capital

Improvement Fund, and Capital Projects – Other Capital Projects Fund. Data from the other

governmental funds are combined into a single, aggregated presentation.

The District adopts an annual appropriated budget for its governmental funds. A budgetary comparison

schedule is provided in the basic financial statements for the General Fund to demonstrate compliance

with its budget.

Proprietary Funds: Proprietary funds may be established to account for activities in which a fee is

charged for services. The District maintains proprietary funds for its Internal Service Funds. Internal

Service Funds are used to accumulate and allocate costs internally among the District’s various functions.

The District used its Internal Service Funds to account for its self-insurance programs, which includes

group medical, dental, and vision coverages, and its workers’ compensation program. The District’s

Internal Service Funds are included within governmental activities in the government-wide financial

statements because the services predominantly benefit the District’s governmental activities.

Fiduciary Funds: Fiduciary funds are used to report assets held in a trustee or fiduciary capacity for the

benefit of external parties, such as school and student activity funds. Fiduciary funds are not reflected in


the government-wide statements because the resources are not available to support the District’s own

programs. In its fiduciary capacity, the District is responsible for ensuring that the assets reported in

these funds are used only for their intended purposes. The District’s fiduciary fund is the agency fund

used to account for the resources held for the school internal funds.

The District uses agency funds to account for resources held for student activities and groups.

Notes to Financial Statements

The notes to the basic financial statements provide additional information that is essential for a full

understanding of the data provided in the government-wide and fund financial statements.

Other Information

In addition to the basic financial statements and accompanying notes, this report also presents required

supplementary information concerning the District’s progress in funding its obligation to provide pension

and other postemployment benefits to its employees.


GOVERNMENT-WIDE FINANCIAL ANALYSIS

As noted earlier, net position over time may serve as a useful indicator of a government’s financial health.

The following is a summary of the District’s net position as of June 30, 2016, compared to net position as

of June 30, 2015:

6/30/16 6/30/15

Current and Other Assets 249,398,205$ 182,539,152$ Capital Assets 532,202,021 522,169,699

Total Assets 781,600,226 704,708,851

Deferred Outflow of Resources 37,442,130 26,226,656

Long-Term Liabilities 362,156,415 290,835,988 Other Liabilities 40,207,056 31,137,342

Total Liabilities 402,363,471 321,973,330

Deferred Inflow of Resources 14,295,013 57,019,346

Net Position: Net Investment in Capital Assets 418,591,280 395,238,425 Restricted 102,448,777 84,324,801 Unrestricted (Deficit) (118,656,185) (127,620,395)

Total Net Position 402,383,872$ 351,942,831$

Net Position, End of Year

GovernmentalActivities

The largest portion of the District’s net position is its investment in capital assets (e.g., land; buildings;

furniture, and equipment), less any related debt still outstanding. The District uses these capital assets

to provide education and related services to the students of St. Johns County, Florida; consequently,

these assets are not available for future spending. Although the District’s investment in capital assets is

reported net of related debt, it should be noted that the resources needed to repay the debt are provided

from other sources, since the capital assets themselves are not to be used to liquidate these liabilities.

The restricted portion of the District’s net position represents resources that are subject to external

restrictions on how they may be used. The District’s deficit unrestricted net position was the result, in


part, of accruing long-term liabilities of $25,676,260 in compensated absences payable, $113,434,973 in

pension benefits payable, and $57,398,905 in other postemployment benefits payable. These long-term

liabilities are funded on a pay-as-you-go basis.

The District’s total net position increased by $50,441,041 during the 2015-16 fiscal year. This increase

is mainly attributable to the one-half cent local sales tax receipts and sales tax revenue bond proceeds.


The following is a summary of the District’s operating results for the fiscal year ended June 30, 2016,

compared to operating results for the fiscal year ended June 30, 2015:

Percent Change6/30/16 6/30/15 2015 to 2016

Program Revenues: Charges for Services 24,897,438$ 23,115,405$ 7.71% Operating Grants and Contributions 13,836,488 13,178,882 4.99% Capital Grants and Contributions 16,739,207 5,987,597 179.56%General Revenues: Property Taxes, Levied for Operational Purposes 121,875,344 113,363,873 7.51% Property Taxes, Levied for Capital Projects 31,911,983 29,106,294 9.64% Local Sales Tax 8,791,558 - N/A Impact Fees 14,768,255 10,874,315 35.81% Proportionate Share Concurrency 8,672,782 5,798,873 49.56% Grants and Contributions Not Restricted to Specif ic Programs 138,868,615 131,468,770 5.63% Unrestricted Investment Earnings 806,500 344,555 134.07% Miscellaneous 5,649,393 4,812,559 17.39%

Total Revenues 386,817,563 338,051,123 14.43%

Functions/Program Expenses: Instruction 175,748,352 173,507,627 1.29% Student Personnel Services 20,408,021 20,093,904 1.56% Instructional Media Services 4,737,300 4,814,789 -1.61% Instruction and Curriculum Development Services 6,113,077 6,271,030 -2.52% Instructional Staff Training Services 5,656,429 5,806,845 -2.59% Instruction Related Technology 7,376,343 6,515,405 13.21% School Board 1,333,544 1,131,053 17.90% General Administration 946,079 967,496 -2.21% School Administration 16,717,692 16,444,564 1.66% Facilities Acquisition and Construction 16,937,677 17,234,877 -1.72% Fiscal Services 2,000,883 1,833,604 9.12% Food Services 10,719,025 10,786,652 -0.63% Central Services 14,939,898 13,673,785 9.26% Student Transportation Services 13,187,377 13,111,533 0.58% Operation of Plant 21,947,067 21,548,382 1.85% Maintenance of Plant 8,278,732 8,509,014 -2.71% Administrative Technology Services 586,180 689,818 -15.02% Community Services 4,163,622 3,787,343 9.94% Unallocated Interest on Long-Term Debt 4,579,224 5,674,732 -19.31%

Total Functions/Program Expenses 336,376,522 332,402,453 1.20%

Change in Net Position 50,441,041 5,648,670 792.97%

Net Position - Beginning 351,942,831 346,294,161 1.63%

Net Position - Ending 402,383,872$ 351,942,831$ 14.33%

Operating Results for the Fiscal Year EndedGovernmental

Activities


The majority of the District’s revenues for current operations are provided through the State’s Florida

Education Finance Program (FEFP), State categorical educational programs, Federal grants, and local

property taxes. These revenues, for the most part, are included in the general revenues, which provide

approximately 86 percent of total revenues, whereas program revenues provide approximately 14

percent. The largest portion of program revenues (95 percent) is from facilities acquisition and

construction, food services, central services, student transportation services, and community service

activities.

The FEFP formula is used to allocate State revenue sources for current District operations, and utilizing

student enrollment data, is designed to maintain equity in funding across all Florida school districts

considering funding ability based on the local property tax base. Student full-time equivalent (FTE)

enrollment increased by 1,374 students, from 34,866 in the 2014-15 fiscal year to 36,240 in the 2015-16

fiscal year. The District had increases in program revenue due to the one-half cent local sales tax receipts

and sales tax revenue bond proceeds. Revenues from property taxes increased as overall property

values have increased. The District experienced an increase in grants and contributions not restricted to

specific programs of $7,399,845, or 6 percent, as compared to the prior fiscal year, mainly because of

an increase in FEFP funding.

Instructional activities comprise the majority of the District’s expenses, representing approximately 52

percent of total expenses of governmental activities for both the 2015-16 and 2014-15 fiscal years.

Instructional expenses increased by $2,240,725, or 1 percent, mainly as a result of hiring additional

teachers to address the increase in student enrollment and salary increases. Overall, total expenses

increased $3,974,069, or 1 percent, as compared to total revenues, which increased $48,766,440, or 14

percent. The increase in total expenses is mainly attributable to an increase in salaries and benefits. The

increase in total revenues is mainly attributable to the one-half cent local sales tax receipts and sales tax

revenue bond proceeds.

FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS

Governmental Funds

The focus of the District’s governmental funds is to provide information on near-term inflows, outflows,

and balances of spendable resources. Such information is useful in assessing the District’s financing

requirements. Specifically, unassigned fund balance may serve as a useful measure of a government’s

net resources available for discretionary use as it represents the portion of fund balance that has not

been limited to a particular purpose by an external party, the District, or a group or individual delegated

authority by the Board to assign resources for particular purposes.


As of June 30, 2016, the District’s governmental funds reported combined ending fund balances of

$193,636,471 or an increase of $61,027,791 in comparison with the prior fiscal year. Fund balance

increases were attributable to the one-half cent local sales tax receipts and sales tax revenue bond

proceeds, which are accounted for in the Capital Projects funds. Approximately 3 percent of total fund

balance is unassigned $5,722,395, which is available for spending at the District’s discretion. The

governmental fund balance can be broken down as follows: $752,889 as nonspendable, $151,074,970

as restricted, $27,589,718 as assigned, and $5,722,395 as unassigned.

Major Governmental Funds

The General Fund is the District’s chief operating fund. At the end of the current fiscal year, unassigned

fund balance was $5,802,555 and assigned fund balance was $27,589,718, while the total fund balance

was $43,084,215. The District’s General Fund’s total fund balance for the 2015-16 fiscal year decreased

by $5,145,523 or 11 percent, as compared to the prior year. This decrease was anticipated as the District

intentionally drew down on its fund balance when developing its 2015-16 budget plan.

Key factors for understanding this decrease are as follows:

Total revenues increased by $18,223,735, or 7 percent, mainly from an increase in property taxes,

local donations, and State funding related to increases in enrollment.

Total expenditures increased by $12,702,033, or 5 percent, due mainly to increased salary and

benefit costs.

Total expenditures exceeded total revenues and net other financing sources, by $5,145,523, due

mainly to an increase in salary and benefit costs, and the District’s plan to spend down General

Fund reserves.

The Debt Service – Other Debt Service Fund is used to account for financial resources used to pay debt

service principal, interest, and related costs for the certificates of participation and sales tax revenue

bonds. For the 2015-16 fiscal year, all available resources were used for current debt-related

expenditures. The total fund balance increased by $3,401,767 in the current fiscal year to $3,417,851,

at June 30, 2016.

The Capital Projects – Local Capital Improvement Fund is used to account for the financial resources

generated by the local capital improvement tax levy to be used for educational capital outlay needs,

including new construction, renovation, and remodeling projects. The total fund balance increased by

$2,964,380 in the current fiscal year to $26,736,400, at June 30, 2016. This increase is mainly due to a

decrease in transfers out to debt services funds for payment of principal and interest payments. Transfers

out of $16,452,476 were mainly to fund education plant maintenance, property insurance, and debt

service expenditures in other funds.


The Capital Projects – Other Capital Projects Fund is mainly used to account for the financial resources

received from certificates of participation proceeds, sales tax revenue bond proceeds, one-half cent local

sales tax receipts, local impact fees, and other miscellaneous sources to be used for educational capital

outlay needs, including new construction, renovation, and remodeling projects. The total fund balance

increased by $60,702,420 to $112,611,796, at June 30, 2016. This increase is mainly due to the issuance

of $42,755,000 of Sales Tax Revenue Bonds, Series 2016, and the one-half cent sales tax revenue of

$5,373,748.

GENERAL FUND BUDGETARY HIGHLIGHTS

Over the course of the fiscal year, the District revises its budget to address unanticipated changes in

revenues and expenditures. Differences between the General Fund original budget and the final

amended budget were not significant for either revenues or expenditures. Projected revenues increased

by $11,607,711 or 5 percent ($255,345,447 to $266,953,158) and projected expenditures increased by

$13,044,868 or 4 percent ($295,585,776 to $308,630,644).

Actual General Fund revenues ($269,643,539) were $2,690,381 or 1 percent more than final budgeted

amounts, and actual expenditures ($281,665,675) were $26,964,969 or 9 percent less than anticipated.

The District continuously reviews cost saving measures and incremental increases in expenditures to

avoid budget shortfall. The variance between the General Fund’s budgeted and actual expenditures is

a reflection of the District’s practice to fully appropriate all potential obligations. The actual ending fund

balance exceeded the estimated fund balance in the final budget by $29,759,052. This provides

maximum flexibility in funding for the General Fund to meet near-term shortfalls in revenue that are not

matching current expenditure levels, in order to stabilize District programs until revenues recover to pre-

recession levels.

CAPITAL ASSETS AND LONG-TERM DEBT

Capital Assets

The District’s investment in capital assets (net of accumulated depreciation) as of June 30, 2016, totaled

$532,202,021. The capital assets include land; construction in progress; improvements other than

buildings; buildings and fixed equipment; furniture, fixtures, and equipment; motor vehicles; audio visual

materials; and computer software.

Major capital asset additions during the current fiscal year included new equipment, construction,

remodeling, renovations, and site improvements at several schools, including the construction of 22

classrooms at Crookshank Elementary School.


Additional information on the District’s capital assets can be found in notes III.E and III.I to the financial

statements.

Long-Term Debt

The District had total long-term debt outstanding of $165,075,242 at the end of the current fiscal year

related to the construction and acquisition of capital assets. This debt consisted of $110,593,294 of

Certificates of Participation, $49,700,948 of Sales Tax Revenue Bonds, and $4,781,000 of State School

Bonds. The District’s long-term debt increased a net amount of $34,382,289, or 26 percent, mainly from

the issuance $42,755,000 of Sales Tax Revenue Bonds, Series 2016. This Series was issued to finance

the cost of constructing and equipping a new K-8 school and a new elementary school.

Additional information on the District’s long-term debt can be found in notes I.F.7, and III.K.1 through

III.K.3 to the financial statements.

REQUESTS FOR INFORMATION

This financial report is designed to provide a general overview of the St. Johns County School District’s

finances. Questions concerning any of the information provided in this report or requests for additional

financial information should be addressed to the Chief Financial Officer, St. Johns County School District,

40 Orange Street, St. Augustine, FL 32084.


Basic Financial Statements


ST. JOHNS COUNTY SCHOOL DISTRICT STATEMENT OF NET POSITION

JUNE 30, 2016

PrimaryGovernment

Governmental ComponentActivities Unit

Assets Current Assets:

Cash and Cash Equivalents 156,729,855$ 785,158$ Investments 111,334 - Accounts Receivable 526,657 20,442 Land Contribution Receivable 9,227,500 - Due from Other Agencies 6,977,040 - Inventory 672,730 - Prepaid Items 80,160 3,019 Restricted Cash and Cash Equivalents 75,072,929 -

Total Current Assets 249,398,205 808,619

Noncurrent Assets: Capital Assets:

Capital Assets Not Being Depreciated 59,354,780 - Capital Assets Being Depreciated, Net 472,847,241 3,137

Total Noncurrent Assets 532,202,021 3,137

Total Assets 781,600,226 811,756

Deferred Outflows of ResourcesNet Carrying Amount of Loss on Debt Refunding 2,624,183 - Pension 34,817,947 -

Total Deferred Outflows of Resources 37,442,130 -

Liabilities Current Liabilities:

Salaries and Benefits Payable 2,986,488 36,887 Payroll Deductions and Withholdings Payable 817,246 - Accounts Payable 6,261,311 10,828 Due to Component Unit 170,858 - Deposits Payable 311,866 - Due to Other Agencies 221,821 - Construction Contracts Payable 1,432,499 - Construction Contracts Payable - Retained Percentage 715,887 - Estimated Unpaid Claims - Self-Insurance Program 2,399,132 - Unearned Revenue 9,236,762 - Matured Bonds Payable 13,410,000 - Matured Interest Payable 2,243,186 -

Total Current Liabilities 40,207,056 47,715

Noncurrent Liabilities:Long-term Liabilities: Portion Due Within One Year 22,440,708 - Portion Due After One Year 339,715,707 -

Total Noncurrent Liabilities 362,156,415 -

Total Liabilities 402,363,471 47,715

Deferred Inflows of ResourcesPension 14,295,013 -

Total Deferred Outflows of Resources 14,295,013 -

Net PositionNet Investment in Capital Assets 418,591,280 3,137 Restricted for:

State Required Carryover Programs 616,695 - Food Service 1,230,782 - Debt Service 8,245,909 - Capital Projects 92,235,247 - Other Purposes 120,144 389,940

Unrestricted (Deficit) (118,656,185) 370,964 Total Net Position 402,383,872$ 764,041$

The accompanying notes to financial statements are an integral part of this statement.41CAFR for FY ended June 30, 2016 January 2017 of 202

Program Revenues

Operating CapitalCharges for Grants and Grants and

Functions/Programs Expenses Services Contributions ContributionsPrimary GovernmentGovernmental Activities:

Instruction 175,748,352$ 1,007,858$ -$ -$ Student Personnel Services 20,408,021 - - - Instructional Media Services 4,737,300 - - - Instruction and Curriculum Development 6,113,077 - - - Instructional Staff Training Services 5,656,429 - - - Instruction Related Technology 7,376,343 - - - School Board 1,333,544 - - - General Administration 946,079 - - - School Administration 16,717,692 - - - Facilities Acquisition and Construction 16,937,677 - - 15,059,785 Fiscal Services 2,000,883 - - - Food Services 10,719,025 6,611,349 4,974,962 - Central Services 14,939,898 11,365,620 - - Student Transportation Services 13,187,377 614,016 8,861,526 - Operation of Plant 21,947,067 - - - Maintenance of Plant 8,278,732 - - - Administrative Technology Services 586,180 - - - Community Services 4,163,622 5,298,595 - - Unallocated Interest on Long-term Debt 4,579,224 - - 1,679,422

Total Primary Government 336,376,522$ 24,897,438$ 13,836,488$ 16,739,207$ Component UnitsSt. Johns County Education Foundation 896,773$ -$ 321,414$ -$

General RevenuesTaxes:

Property Taxes, Levied for Operational PurposesProperty Taxes, Levied for Capital ProjectsLocal Sales Tax

Grants and Contributions Not Restricted to Specific ProgramsUnrestricted Investment Earnings MiscellaneousImpact FeesProportionate Share ConcurrencyTotal General Revenues Change in Net PositionNet Position - BeginningNet Position - Ending

ST. JOHNS COUNTY SCHOOL DISTRICTSTATEMENT OF ACTIVITIES

FOR THE FISCAL YEAR ENDED JUNE 30, 2016

The accompanying notes to financial statements are an integral part of this statement.


Primary Government

Governmental ComponentActivities Unit

(174,740,494)$ -$ (20,408,021) - (4,737,300) - (6,113,077) - (5,656,429) - (7,376,343) - (1,333,544) -

(946,079) - (16,717,692) - (1,877,892) - (2,000,883) -

867,286 - (3,574,278) - (3,711,835) -

(21,947,067) - (8,278,732) -

(586,180) - 1,134,973 -

(2,899,802) - (280,903,389) -

- (575,359)

121,875,344 - 31,911,983 - 8,791,558 -

138,868,615 592,014 806,500 1,358

5,649,393 - 14,768,255 - 8,672,782 -

331,344,430 593,372 50,441,041 18,013

351,942,831 746,028 402,383,872$ 764,041$

Changes in Net PositionNet (Expense) Revenue and


LocalGeneral Other Capital

Fund Debt Service Improvement FundAssets

Cash and Cash Equivalents 48,214,659$ -$ 27,134,709$ Investments 75,721 17,931,767 - Accounts Receivable 159,962 - - Due from Other Agencies 62,754 1,139,270 285 Due from Other Funds 663,081 - - Due from Component Units 683,296 - - Due from Internal Funds 75,898 - - Inventories 458,604 - - Prepaid Items - - -

Total Assets 50,393,975$ 19,071,037$ 27,134,994$

Liabilities and Fund Balances

LiabilitiesSalaries and Benefits Payable 2,892,031$ -$ -$ Payroll Deductions and Withholdings Payable 787,957 - - Accounts Payable 3,278,231 - 388,100 Matured Certificates of Participation Payable 13,410,000 Matured Interest Payable 2,243,186 Construction Contracts Payable - - 10,494 Construction Contracts Payable - Retainage - - - Due to Other Funds - - - Due to Internal Funds 1,295 - - Due to Other Agencies 211,297 - - Due to Component Units 138,949 - - Deposits Payable - - -

Total Liabilities 7,309,760 15,653,186 398,594

Deferred inflows of resourcesUnavailable Revenues and Land Contribution - - -

Total deferred inflows of resources - - -

Fund BalancesNonspendable:

Prepaid Items - - - Inventories 458,604 - -

Total Nonspendable Fund Balance 458,604 - - Restricted for:

State Required Carryover Programs 616,695 - Debt Service - 3,417,851 - Capital Projects - - 26,736,400 Food Service Operations - - - Restricted for Other Restrictions 120,144 - -

Total Restricted Fund Balance 736,839 3,417,851 26,736,400 Committed for: Economic Stabilization 7,853,547 - - Committed for .25 Discretionary Millage 642,952 - -

Total Committed Fund Balance 8,496,499 - - Assigned for: Budget Shortfall 2016-17 Fiscal Year 27,589,718 - -

Total Assigned Fund Balance 27,589,718 - - Unassigned Fund Balance 5,802,555 - -

Total Fund Balances 43,084,215 3,417,851 26,736,400

Total Liabilities and Fund Balances 50,393,975$ 19,071,037$ 27,134,994$

ST. JOHNS COUNTY SCHOOL DISTRICTBALANCE SHEET - GOVERNMENTAL FUNDS

JUNE 30, 2016

The accompanying notes to financial statements are an integral part of this statement.44CAFR for FY ended June 30, 2016 January 2017 of 202

Capital Projects - Other TotalOther Capital Governmental GovernmentalProjects Fund Funds Funds

58,854,870$ 2,353,241$ 136,557,479$ 52,424,438 4,828,058 75,259,984

276,896 1,886 438,744 3,554,303 1,537,132 6,293,744

- - 663,081 - - 683,296 - - 75,898 - 214,125 672,729 - 80,160 80,160

115,110,507$ 9,014,602$ 220,725,115$

-$ 93,202$ 2,985,233$ - 28,987 816,944

239,531 200,850 4,106,712 13,410,000 2,243,186

1,422,005 - 1,432,499 715,887 - 715,887 121,288 541,793 663,081

- - 1,295 - 10,524 221,821 - 31,909 170,858 - 311,866 311,866

2,498,711 1,219,131 27,079,382

- 9,262 9,262 - 9,262 9,262

- 80,160 80,160 - 214,125 672,729 - 294,285 752,889

- - 616,695 - 4,828,058 8,245,909

112,611,796 1,727,369 141,075,565 - 1,016,657 1,016,657 - - 120,144

112,611,796 7,572,084 151,074,970

- - 7,853,547 - - 642,952 - - 8,496,499

- - 27,589,718 - - 27,589,718 - (80,160) 5,722,395

112,611,796 7,786,209 193,636,471

115,110,507$ 9,014,602$ 220,725,115$


ST. JOHNS COUNTY SCHOOL DISTRICTRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET POSITIONJUNE 30, 2016

Total Fund Balances - Governmental Funds 193,636,471$

Amounts reported for governmental activities in the statement of net positionare different because:

Capital assets, net of accumulated depreciation, used in governmental activities are notfinancial resources and, therefore, are not reported as assets in the governmental funds. 532,202,021

Deferred outflows of resources are not available to pay for current expenditures and,therefore, are not reported in the governmental funds. This is the deferred outflowreported as a result of the net difference between the carrying amount of refundeddebt and its reacquisition cost and certain changes in the net pension liability. 37,442,130

Deferred inflows of resources are not recognized as revenue in the current period and,therefore, are not reported in the government funds. This is the deferred inflow as a result of certain changes in the net pension liability. (14,295,013)

The internal service funds are used by management to charge the costs of certainactivities, such as insurance, to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position. 14,983,643

Long-term liabilities are not due and payable in the current period and, therefore, are notreported as liabilities in the governmental funds. Long-term liabilities and unamortizedamounts at year-end consist of:

Certificates of Participation Payable 104,580,000$ Bonds Payable 54,481,948 Unamortized Premiums 6,013,294 Compensated Absences Payable 25,676,260 Other Postemployment Benefits Payable 57,398,905 Net Pension Liability 113,434,973

(361,585,380)

Net Position - Governmental Activities 402,383,872$



General Other Local CapitalFund Debt Service Improvement Fund

RevenuesFederal Direct 212,987$ -$ -$ Federal Through State and Local 27,950 - - State 135,315,745 - -

Local:Property Taxes 121,875,344 - 31,911,983 Local Sales Taxes - 3,417,810 - Charges for Services - Food Service - - - Impact Fees - - - Other 12,211,513 56 235,453

Total Revenues 269,643,539 3,417,866 32,147,436 Expenditures

Current - Education:Instruction 167,782,703 - - Student Personnel Services 17,698,736 - - Instructional Media Services 4,678,354 - - Instruction and Curriculum Development 4,526,898 - - Instructional Staff Training Services 4,102,347 - - Instruction Related Technology 7,318,543 - - School Board 1,328,934 - - General Administration 372,369 - - School Administration 16,501,219 - - Facilities Acquisition and Construction 4,050,613 - 8,813,245 Fiscal Services 1,977,453 - - Food Services - - - Central Services 3,490,984 - - Student Transportation Services 11,924,560 - - Operation of Plant 21,797,610 - - Maintenance of Plant 8,199,549 - - Administrative Technology Services 581,874 - - Community Services 4,050,336 - -

Capital Outlay:Facilities Acquisition and Construction 713,377 - 674,401 Other Capital Outlay 569,216 - 3,242,934

Debt Service:Retirement of Principal - 13,410,000 - Interest and Fiscal Charges - 4,970,031 -

Total Expenditures 281,665,675 18,380,031 12,730,580 Excess (Deficiency) of Revenues

Over Expenditures (12,022,136) (14,962,165) 19,416,856 Other Financing Sources (Uses)

Transfers In 6,772,911 17,894,242 - Transfers Out - - (16,452,476) Loss Recoveries 103,702 - - Issuance of Sales Tax Bonds - - - Premiums on Issuance of Long-Term Debt - 469,690 -

Total Other Financing Sources (Uses) 6,876,613 18,363,932 (16,452,476) Net Change in Fund Balances (5,145,523) 3,401,767 2,964,380 Fund Balances - Beginning 48,229,738 16,084 23,772,020 Fund Balances - Ending 43,084,215$ 3,417,851$ 26,736,400$

ST. JOHNS COUNTY SCHOOL DISTRICTSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

FOR THE FISCAL YEAR ENDED JUNE 30, 2016GOVERNMENTAL FUNDS



Capital Projects - Other TotalOther Capital Governmental GovernmentalProjects Fund Funds Funds

-$ 1,799,735$ 2,012,722$ - 15,951,783 15,979,733

127,725 1,964,046 137,407,516

- - 153,787,327 5,373,748 - 8,791,558

- 6,611,348 6,611,348 14,768,255 - 14,768,255 9,213,258 239,388 21,899,668

29,482,986 26,566,300 361,258,127

- 5,930,649 173,713,352 - 2,448,074 20,146,810 - - 4,678,354 - 1,510,073 6,036,971 - 1,491,283 5,593,630 - - 7,318,543 - - 1,328,934 - 569,327 941,696 - - 16,501,219

1,536,085 2,519,702 16,919,645 - - 1,977,453 - 10,639,904 10,639,904 - - 3,490,984 - 51,129 11,975,689 - 333 21,797,943 - - 8,199,549 - - 581,874 - 63,505 4,113,841

8,931,658 222,208 10,541,644 99,114 252,641 4,163,905

- 706,000 14,116,000 - 1,058,787 6,028,818

10,566,857 27,463,615 350,806,758

18,916,129 (897,315) 10,451,369

- 1,002,062 25,669,215 (8,216,739) (1,000,000) (25,669,215)

- - 103,702 42,755,000 - 42,755,000 7,248,030 - 7,717,720

41,786,291 2,062 50,576,422 60,702,420 (895,253) 61,027,791 51,909,376 8,681,462 132,608,680

112,611,796$ 7,786,209$ 193,636,471$


Net Change in Fund Balances - Governmental Funds 61,027,791$

Amounts reported for governmental activities in the statement of activities are different because:

Capital outlays are reported in governmental funds as expenditures. However, in the statement of activities, the cost of those assets is allocated over their useful lives as depreciation expense. This is the amount of capital outlays in excess of depreciation expense in the current period: Capital Outlay Expenditures 14,705,548$ Depreciation Expense (18,717,567) Donations 14,044,341 10,032,322

Long-term debt proceeds are reported as other financing sources in the governmental funds, but issuing debt increases long-term liabilities in the statement of net position. The following details the amount of long-term bonded debt that was issued during the current period: Sales Tax Revenue Bonds Issued (42,755,000) Premium on Sales Tax Revenue Bonds Issued (7,717,720) (50,472,720)

Repayment of long-term debt is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. The following details the amount of long-term debt principal repaid in the current period: Certificates of Participation Payable 13,410,000 Bonds Payable 706,000 14,116,000

Premiums on bond issues are amortized over the life of the debt in the statement of activities, but are reported as revenue in the fund statements. This is the amount of the current amortization: Certificates of Participation Payable 1,202,659 Sales Tax Revenue Bonds Payable 771,772 1,974,431

Loss on debt refunding is amortized over the life of the debt in the statement of activities, but is reported as expenditure in the fund statements. This is the amount of current loss amortization. (524,837)

In the statement of activities, the cost of compensated absences is measured by the amounts earned during the year, while in the governmental funds, expenditures are recognized based on the amounts actually paid for compensated absences. This is the net amount of vacation and sick leave used in excess of the amount paid in the current period. 136,053

Postemployment healthcare benefits costs are recorded in the statement of activities under the full accrual basis of accounting, but are not recorded in the governmental funds until paid. This is the net increase in the postemployment healthcare benefits liability for the current fiscal year. (77,013)

Internal service funds are used by management to charge the cost of certain activities, such as insurance, to individual funds. The net revenue of internal service funds is reported with governmental activities. 11,069,188

Deferred Outflows and Inflows are related to changes in the pension liability as reported in the statement of activities. 3,159,826

Change in Net Position of Governmental Activities 50,441,041$


ST. JOHNS COUNTY SCHOOL DISTRICTRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIESFOR THE FISCAL YEAR ENDED JUNE 30, 2016


ST. JOHNS COUNTY SCHOOL DISTRICTSTATEMENT OF NET POSITION

PROPRIETARY FUNDSJUNE 30, 2016

GovernmentalActivities -

InternalService Funds

AssetsCurrent Assets:

Cash 20,096,656$ Accounts Receivable 13,310

Total Current Assets 20,109,966 Noncurrent Assets:

Capital Assets, Net of Depreciation 239,445 Total Noncurrent Assets: 239,445

Total Assets 20,349,411

LiabilitiesCurrent Liabilities:

Accrued Salaries and Benefits 1,255 Payroll Deductions and Withholdings Payable 302 Accounts Payable 2,154,599 Estimated Insurance Claims Payable 2,970,167

Total Liabilities 5,126,323

Net PositionInvestment in Capital Assets 239,445 Unrestricted 14,983,643

Total Net Position 15,223,088$



ST. JOHNS COUNTY SCHOOL DISTRICTSTATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION

PROPRIETARY FUNDSFOR THE FISCAL YEAR ENDED JUNE 30, 2016



Operating RevenuesInsurance Premiums 50,548,466$ Other Operating Revenues 768,905

Total Operating Revenues 51,317,371

Operating ExpensesInsurance Claims 37,902,563 Fees and Other 14,826 Salaries 194,620 Employee Benefits 63,598 Purchased Services 2,118,352 Depreciation 37,186

Total Operating Expenses 40,331,145

Operating Income 10,986,226

Nonoperating RevenuesInvestment Income 45,775

Change in Net Position 11,032,001

Net Position - Beginning 4,191,087

Net Position - Ending 15,223,088$



ST. JOHNS COUNTY SCHOOL DISTRICTSTATEMENT OF CASH FLOWS

PROPRIETARY FUNDSFOR THE FISCAL YEAR ENDED JUNE 30, 2016



Cash Flows from Operating ActivitiesCash Received from Board Funds and Participants 51,317,371$ Cash Payments to Suppliers for Goods and Services (12,906,417) Cash Payments to Employees (258,218) Cash Payments for Insurance Claims (28,527,382)

Net Cash Used by Operating Activities 9,625,354

Cash Flows from Investing ActivitiesInvestment Income 45,775

Net Increase in Cash 9,671,129

Cash, Beginning of Year 10,425,527

Cash, End of Year 20,096,656$

Reconciliation of Operating Income to Net Cash Provided byOperating Activities

Operating Income 10,986,226$ Adjustments to Reconcile Operating Income to

Net Cash Provided by Operating Activities: Depreciation expense 37,186

Changes in Assets and Liabilities:Increase in Accounts Receivable (14,134) Decrease in Due from Reinsurer 159,667 Increase in Salaries and Benefits Payable 1,255 Increase in Payroll Tax Liabilities 302 Decrease in Accounts Payable (980,576) Decrease in Estimated Insurance Claims Payable (564,572) Total Adjustments (1,360,872)

Net Cash Provided by Operating Activities 9,625,354$



AgencyFunds

ASSETS

Cash 4,055,294$ Due from Budgetary Funds 1,295

TOTAL ASSETS 4,056,589$

LIABILITIES

Due to Budgetary Funds 75,898$ Internal Accounts Payable 3,980,691

TOTAL LIABILITIES 4,056,589$

ST. JOHNS COUNTY SCHOOL DISTRICTSTATEMENT OF FIDUCIARY ASSETS AND LIABILITIES

FIDUCIARY FUNDSJUNE 30, 2016



Notes to the Financial Statements


ST. JOHNS COUNTY SCHOOL DISTRICT Notes to the Financial Statements

June 30, 2016

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Description of Government-wide Financial Statements

The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. All fiduciary activities are reported only in the fund financial statements. Governmental activities, which normally are supported by taxes, intergovernmental revenues, and other nonexchange transactions, are reported separately from business-type activities, which rely to a significant extent on fees charged to external customers for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The District has no business-type activities.

The statement of activities presents a comparison between direct expenses and program revenues for each function or program of the St. Johns County School District’s (District) governmental activities. Direct expenses are those that are specifically associated with a service, program, or department and are thereby clearly identifiable to a particular function. Depreciation expense is allocated to the various functions.

B. Reporting Entity

The St. Johns County District School Board (Board) has direct responsibility for operation, control, and supervision of District schools and is considered a primary government for financial reporting. The District is considered part of the Florida system of public education, operates under the general direction of the Florida Department of Education, and is governed by State law and State Board of Education (SBE) rules. The governing body of the District is the Board, which is composed of five elected members. The appointed Superintendent of Schools is the executive officer of the Board. Geographic boundaries of the District correspond with those of St. Johns County.

Criteria for determining if other entities are potential component units that should be reported within the District’s basic financial statements are identified and described in the Governmental Accounting Standards Board’s (GASB) Codification of Governmental Accounting and Financial

Reporting Standards, Sections 2100 and 2600. The application of these criteria provides for identification of any legally separate entities for which the Board is financially accountable and other organizations for which the nature and significance of their relationship with the Board are such that exclusion would cause the District’s basic financial statements to be misleading.

Based on the application of these criteria, the following component units are included within the District’s reporting entity:

Blended Component Unit. Blended component units are, in substance, part of the primary District’s operations, even though they are legally separate entities. Thus, blended component units are appropriately presented as part of the District. The St. Johns County School Board Leasing Corporation (Leasing Corporation) was formed to facilitate financing for the acquisition



June 30, 2016

of facilities and equipment as further discussed in note III.K.1. The Board of Directors of the Leasing Corporation are members of the School Board who elected to serve as ex-offcio Directors. Due to the substantive economic relationship between the District and the Leasing Corporation and their shared governing body, the financial activities of the Leasing Corporation are included in the accompanying basic financial statements. Separate financial statements for the Leasing Corporation are not published.

Discretely Presented Component Unit. The component unit column in the government-wide financial statements includes the financial data of the District's other component unit, the St. Johns County Education Foundation, Inc. (Foundation). The Foundation is a separate not-for-profit corporation organized and operated as a direct-support organization under Section 1001.453, Florida Statutes, to receive, hold, invest, and administer property and to make expenditures to and for the benefit of public prekindergarten through twelfth grade education in St. Johns County. Because of the nature and significance of its relationship with the District, the Foundation is considered a component unit.

The financial data reported on the accompanying statements was derived from the Foundation’s audited financial statements for the fiscal year ended June 30, 2016. The audit report is filed in the District’s administrative offices.

C. Basis of Presentation: Government-wide Financial Statements

While separate government-wide and fund financial statements are presented, they are interrelated. The governmental activities column incorporates data from governmental funds and internal service funds. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements.

The effects of interfund activity have been eliminated from the government-wide financial statements, except for interfund services provided and used.

D. Basis of Presentation: Fund Financial Statements

The fund financial statements provide information about the District’s funds, including the fiduciary funds and blended component units. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds. Major individual governmental funds are reported as separate columns in the fund financial statements.

The District reports the following major governmental funds:

General Fund – to account for all financial resources not required to be accounted for in another fund, and for certain revenues from the State that are legally restricted to be expended for specific current operating purposes.



June 30, 2016

Debt Service – Other Debt Service Fund – to account for the accumulation of resources for, and the payment of, debt principal, interest, and related costs for the certificates of participation, and sales tax revenue bonds.

Capital Projects – Local Capital Improvement Fund – to account for the financial resources generated by the local capital improvement tax levy to be used for educational capital outlay needs, including new construction, renovation, and remodeling projects.

Capital Projects – Other Capital Projects Fund – to account mainly for the financial resources received from certificates of participation proceeds, sales tax revenue bond proceeds, one-half cent local sales tax receipts, local impact fees, and other miscellaneous sources to be used for educational capital outlay needs, including new construction, renovation, and remodeling projects.

Additionally, the District reports the following proprietary and fiduciary fund types:

Internal Service Funds – to account for the District’s self-insured health and hospitalization programs, which include medical, dental, and vision plans, and the District’s self-insured workers’ compensation program (for claims incurred prior to June 30, 2008).

Agency Funds – to account for resources of the school internal funds, which are used to administer monies collected at several schools in connection with school, student athletic, class, and club activities.

During the course of operations the District has activity between funds for various purposes. Any residual balances outstanding at fiscal year-end are reported as due from/to other funds. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Balances between the funds included in governmental activities (i.e., the governmental and internal service funds) are eliminated so that only the net amount is included as internal balances in the governmental activities column. Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial statements, these amounts are reported at gross amounts as transfers in and out. While reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Transfers between the funds included in governmental activities are eliminated so that only the net amount is included as transfers in the governmental activities column.

E. Basis of Accounting

The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when a liability is incurred, regardless of the timing of the related cash flows. Property taxes are recognized in the year for which they are levied. Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligibility requirements imposed by the provider have been satisfied.



June 30, 2016

The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues, except for certain grant revenues, are recognized when they become measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. The District considers revenues to be available if they are collected within 60 days of the end of the current fiscal year. When grant terms provide that the expenditure of resources is the prime factor for determining eligibility for Federal, State, and other grant resources, revenue is recognized at the time the expenditure is made. Entitlements are recorded as revenues when all eligibility requirements are met, including any time requirements. Expenditures are generally recognized when the related fund liability is incurred, as under accrual accounting. However, debt service expenditures, claims and judgments, other postemployment benefits, and compensated absences, are only recorded when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuances of long-term debt are reported as other financing sources. Allocations of cost, such as depreciation, are not recognized in governmental funds.

The proprietary funds are reported using the economic resources measurement focus and the accrual basis of accounting. The agency fund has no measurement focus but utilizes the accrual basis of accounting for reporting its assets and liabilities.

The Foundation is accounted for under the not-for-profit basis of accounting and uses the accrual basis of accounting whereby revenues are recognized when earned and expenses are recognized when incurred.

F. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance

1. Cash and Cash Equivalents

The District’s cash and cash equivalents are considered to be cash on hand, demand deposits, money market funds, and short-term, highly liquid investments with original maturities of 3 months or less from the date of acquisition. Investments classified as cash equivalents include amounts placed with the State Board of Administration (SBA) in Florida Prime, amounts placed with the Florida Education Investment Trust Fund (FEITF) and amounts in money market mutual funds.

Cash deposits are held by banks qualified as public depositories under Florida law. All deposits are insured by Federal depository insurance, up to specified limits, or collateralized with securities held in Florida's multiple financial institution collateral pool as required by Chapter 280, Florida Statutes.

2. Investments

Investments consist of amounts placed in the State Board of Administration (SBA) debt service accounts for investment of debt service monies, amounts placed with the SBA for



June 30, 2016

participation in the Florida PRIME investment pool created by Section 218.405, Florida Statutes, amounts placed in FEITF, and those made locally. These investment pools operate under investment guidelines established by Section 215.47, Florida Statutes.

The District’s investments in Florida PRIME, which the SBA indicates is a Securities and Exchange Commission Rule 2a7-like external investment pool, are similar to money market funds in which shares are owned in the fund rather than the underlying investments. These investments consist of commercial paper, obligations of United States Government agencies and instrumentalities, and corporate notes and bonds are reported at amortized cost, which approximates fair value. There are no limitations of restrictions on withdrawal of these funds.

Investments made locally consist of amounts placed in a money market mutual fund under a trust agreement in connection with certificates of participation financing arrangements, including QSCBs, and amounts placed in the FEITF, a Securities and Exchange Commission (SEC) Rule 2a7-like external investment pool, which are similar to money market funds in which shares are owned in the fund rather than the underlying investments. These investments are reported at amortized cost, which approximates fair value. There are no limitations or restrictions on withdrawal of these funds.

Types and amounts of investments held at fiscal year-end are described in note III.B.

3. Restricted Cash and Cash Equivalents

Certain assets held by a trustee under a trust agreement, in the name of the District, in connection with certificates of participation financing arrangements are classified as restricted assets on the statement of net position because they are set aside for repayment of maturing debt as required by the applicable debt covenants or represent proceeds from the sale of certificates of participation. In addition, revenue from the one-half cent local sales tax receipts is set aside for repayment of maturing debt of the Sales Tax Revenue Bonds, as required by the debt covenants or represent proceeds from the sale of these bonds.

These assets consist of $15,653,226 restricted for the repayment of certificates of participation principal and interest payable on July 1, 2016, and reported as current liabilities on the statement of net position; $4,716,724 restricted for the repayment of QSCBs principal that is maintained in a sinking fund account; $2,278,540 restricted for the repayment of Sales Tax Revenue Bonds principal and interest; $49,085,277 of Sales Tax Revenue bonds proceeds restricted for the cost of construction and equipping a new K-8 school and a new elementary school; and $3,339,162 of one-half cent local sales tax receipts restricted for new construction, reconstruction and improvement of school facilities, including safety and security improvements and technology upgrades.

4. Inventories and Prepaid Items

Inventories consist of expendable supplies held for consumption in the course of District operations. Inventories are stated at last invoice price, which approximates the first-in, first-out basis, except that the United States Department of Agriculture donated foods are stated at their fair value as determined at the time of donation to the District's food service



June 30, 2016

program by the Florida Department of Agriculture and Consumer Services, Bureau of Food Distribution. The costs of inventories are recorded as expenditures when used rather than purchased.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.

5. Capital Assets

Expenditures for capital assets acquired or constructed for general District purposes are reported in the governmental fund that financed the acquisition or construction. The capital assets so acquired are reported at cost in the government-wide statement of net position but are not reported in the governmental fund financial statements. Capital assets are defined by the District as those costing more than $1,000. Such assets are recorded at historical cost if purchased or constructed. Donated assets are recorded at fair value at the date of donation.

Capital assets are depreciated using the straight-line method over the following estimated useful lives:

Description Estimated Lives

Improvements Other Than Buildings 10 - 40 years

Buildings and Fixed Equipment 10 - 50 years

Furniture, Fixtures, and Equipment 3 - 15 years

Motor Vehicles 5 - 10 years

Audio Visual Materials and Computer Software 5 years

Current year information relative to changes in capital assets is described in note III.E.

6. Pensions

In the government-wide statement of net position, liabilities are recognized for the District’s proportionate share of each pension plan’s net pension liability. For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Florida Retirement System (FRS) defined benefit plan and the Health Insurance Subsidy (HIS) defined benefit plan and additions to/deductions from the FRS’s and the HIS’s fiduciary net position have been determined on the same basis as they are reported by the FRS and the HIS plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value.



June 30, 2016

The District’s retirement plans and related amounts are described in note III.F.

7. Long-Term Liabilities

Long-term obligations that will be financed from resources to be received in the future by governmental funds are reported as liabilities in the government-wide statement of net position. Debt premiums and discounts are deferred and amortized over the life of the bonds and using the effective interest method. Bonds and certificates of participation payable are reported net of the applicable bond premium or discount.

In the governmental fund financial statements, bonds and other long-term obligations are not recognized as liabilities until due. Governmental fund types recognize debt premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources, while discounts on debt issuances are reported as other financing uses.

Changes in long-term liabilities for the current year are reported in a note III.K.3.

8. Deferred Outflows/Inflows of Resources

In addition to assets, the statement of financial position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to future periods and, as such, will not be recognized as an outflow of resources (expense/expenditure) until then. The District has two items that qualify for reporting in this category. The deferred

outflows for loss on debt refunding reported in the government-wide statement of net position results from the difference in the carrying value of the refunded debt and its reacquisition price. This amount is deferred and amortized, as a component of interest expense, over the shorter of the life of the refunded or refunding debt. The deferred outflows of resources related to pensions are discussed in note III.F.1.

In addition to liabilities, the statement of financial position reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and, as such, will not be recognized as an inflow of resources (revenue) until that time. The District has one type of item that qualifies for reporting in this category on the statement of net position. The deferred inflows of resources related to pensions are discussed in note III.F.1.

9. Net Position Flow Assumption

The District occasionally funds outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. To calculate the amounts to report as restricted net position and unrestricted net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. Consequently, it is the District’s policy to consider restricted net position to have been depleted before unrestricted net position is applied.



June 30, 2016

10. Fund Balance Flow Assumptions

The District may fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). To calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the District’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

11. Fund Balance Policies

Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The District itself can establish limitations on the use of resources through either a commitment (committed fund balance) or an assignment (assigned fund balance).

The District reports its governmental fund balances in the following categories:

Nonspendable Fund Balance. Nonspendable fund balance is the net current financial resources that cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact. Generally, not in spendable form means that an item is not expected to be converted to cash. The District classifies its amounts reported as inventories and prepaid items as nonspendable.

Restricted Fund Balance. Restricted fund balance is the portion of fund balance on which constraints have been placed by creditors, grantors, contributors, laws or regulations of other governments, constitutional provisions, or enabling legislation. Restricted fund balance places the most binding level of constraint on the use of fund balance. The District classifies most of its fund balances as restricted, other than those in the General Fund. In the General Fund, unspent State Required Carryover (Categorical) Programs and earmarked educational funding that is legally or otherwise restricted are reported as restricted fund balance.

Committed Fund Balance. The committed fund balance classification may include amounts that can be used only for the specific purposes determined by a formal action of the District’s highest level of decision-making authority. The Board is the highest level of decision-making authority for the District that can, by adoption of a resolution prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the resolution remains in place until a similar action is taken (the adoption of another resolution) to remove or revise the limitation. The District reported the following as committed fund balance in its General Fund:

Economic Stabilization Arrangement. The District has established an economic stabilization arrangement in Board Rule 7.01, School District Budget System, which



June 30, 2016

provides that the Board shall commit an amount equal to 3 percent of its estimated revenue from the first Florida Education Finance Program calculation under a stabilization arrangement for the use in an emergency. The District classified the stabilization arrangement monies as committed fund balance and defines the circumstances that constitute an emergency are non-routine in nature and specifically include the following:

Failure to pay loans or debt service when due as a result of lack of funds;

Failure to pay uncontested claims to creditors within 90 days due to lack of funds;

Failure to transfer taxes, social security or retirement/benefits for employees; and

Failure for one pay period to pay wages, salaries, or retirement benefits to employees.

At June 30, 2016, the stabilization balance was $7,853,547. Discretionary Millage. In accordance with Section 1011.71(1), Florida Statutes, the

District levied an additional 0.25 discretionary millage for critical operating needs. The School Board adopted the additional discretionary millage on September 28, 2010, and specified that the monies be used to support the maintenance and equipment needs of its educational facilities. The unspent portion of the additional discretionary millage monies, totaling $642,952 at June 30, 2016, is classified as committed fund balance.

Assigned Fund Balance. Amounts in the assigned fund balance classification are intended to be used by the District for specific purposes but do not meet the criteria to be classified as committed. Board Rule 7.01 authorizes the Superintendent or Superintendent’s designee to assign fund balance. The Board may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment.

Unassigned Fund Balance. The unassigned fund balance is the portion of fund balance that is the residual classification for the General Fund. This balance represents amounts that have not been restricted, committed, or assigned for specific purposes.

G. Revenues and Expenditures/Expenses

1. Program Revenues

Amounts reported as program revenues include charges paid by the recipient of the goods or services offered by the program, and grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. All taxes, including those dedicated for specific purposes, and other internally dedicated resources are reported as general revenues rather than program revenues. Revenues that are not classified as program revenues are presented as general revenues. The comparison of direct expenses



June 30, 2016

with program revenues identifies the extent to which each governmental function is self-financing or draws from the general revenues of the District.

2. State Revenue Sources

Significant revenues from State sources for current operations include the Florida Education Finance Program administered by the Florida Department of Education (FDOE) under the provisions of Section 1011.62, Florida Statutes. In accordance with this law, the District determines and reports the number of full-time equivalent (FTE) students and related data to the FDOE. The FDOE performs certain edit checks on the reported number of FTE and related data, and calculates the allocation of funds to the District. The District is permitted to amend its original reporting for a period of 5 months following the date of the original reporting. Such amendments may impact funding allocations for subsequent years. The FDOE may also adjust subsequent fiscal period allocations based upon an audit of the District's compliance in determining and reporting FTE and related data. Normally, such adjustments are treated as reductions or additions of revenue in the fiscal year when the adjustments are made.

The State provides financial assistance to administer certain educational programs. SBE rules require that revenue earmarked for certain programs be expended only for the program for which the money is provided, and require that the money not expended as of the close of the fiscal year be carried forward into the following year to be expended for the same educational programs. The FDOE generally requires that these educational program revenues be accounted for in the General Fund. A portion of the fund balance of the General Fund is restricted in the governmental fund financial statements for the balance of categorical and earmarked educational program resources.

The State allocates gross receipts taxes, generally known as Public Education Capital Outlay money, to the District on an annual basis. The District is authorized to expend these funds only upon applying for and receiving an encumbrance authorization from the Department.

A schedule of revenue from State sources for the current fiscal year is presented in note III.O.1.

3. District Property Taxes

The Board is authorized by State law to levy property taxes for district school operations, capital improvements, and debt service.

Property taxes consist of ad valorem taxes on real and personal property within the District. Property values are determined by the St. Johns County Property Appraiser, and property taxes are collected by the St. Johns County Tax Collector.

The Board adopted the 2015 tax levy on September 15, 2015. Tax bills are mailed in October and taxes are payable between November 1 of the year assessed and March 31 of the following year at discounts of up to 4 percent for early payment.



June 30, 2016

Taxes become a lien on the property on January 1, and are delinquent on April 1, of the year following the year of assessment. State law provides for enforcement of collection of personal property taxes by seizure of the property to satisfy unpaid taxes, and for enforcement of collection of real property taxes by the sale of interest-bearing tax certificates to satisfy unpaid taxes. The procedures result in the collection of essentially all taxes prior to June 30 of the year following the year of assessment.

Property tax revenues are recognized in the government-wide financial statements when the Board adopts the tax levy. Property tax revenues are recognized in the governmental fund financial statements when taxes are received by the District, except that when taxes are collected by the St. Johns County Tax Collector at fiscal year-end but not yet remitted to the District, revenue is accrued.

Millages and taxes levied for the current year are presented in note III.O.2.

4. Educational Impact Fees

St. Johns County (County) imposes an educational impact fee based on an ordinance adopted by the County Commission in 1987. This ordinance was most recently amended in March 2011, when Ordinance 2011-7 established, in part, revised rates to be collected. The educational impact fee is collected by the County for most new residential construction. The fees can only be used to acquire, construct, expand, and equip the educational sites and educational capital facilities necessitated by new development and to pay for certain collection and legal defense costs.

5. Federal Revenue Sources

The District receives Federal awards for the enhancement of various educational programs. Federal awards are generally received based on applications submitted to, and approved by, various granting agencies. For Federal awards in which a claim to these grant proceeds is based on incurring eligible expenditures, revenue is recognized to the extent that eligible expenditures have been incurred.

6. Compensated Absences

In the government-wide financial statements, compensated absences (i.e., paid absences for employee vacation leave and sick leave) are accrued as liabilities using the vesting method. Under this method, the liability amount is estimated based on the accumulated leave at fiscal year-end for employees who are currently eligible, or expected to become eligible, to receive termination payments. A liability for these amounts is reported in the governmental fund financial statements only if it has matured, such as for occurrences of employee resignations and retirements. The liability for compensated absences includes salary-related benefits, where applicable.

7. Proprietary Funds Operating and Nonoperating Revenues and Expenses

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing



June 30, 2016

and delivering goods in connection with the proprietary funds’ principal ongoing operations. The principal operating revenues of the District’s internal service funds are charges for employee health insurance premiums and workers’ compensation insurance. Operating expenses include insurance claims and excess coverage premiums. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

II. ACCOUNTING CHANGE

Change in Reporting Entity. The ABLE School, Inc., Saint Augustine Montessori Community, Inc., St. Paul School of Excellence, Inc., the Therapeutic Learning Center Charter School and the St. Johns Community Campus Charter School operated by The ARC of the St. Johns, Inc., and the First Coast Technical Institute, Inc., d/b/a First Coast Technical College were reported as discretely presented component units in the 2014-15 financial statements as, collectively, these charter entities were considered to be of such significance that exclusion would cause the District’s financial statements to be misleading. During the 2015-16 fiscal year, ABLE School, Inc., and St. Paul School of Excellence, Inc., ceased operations. In addition, First Coast Technical College’s operations deteriorated to the extent that the charter school ceased operations and merged its operations with the District effective July 1, 2016. As a result of these operational changes and declining significance in relation to the District, all charter entities have been removed as discretely presented component units in the District’s 2015-16 financial statements. Accordingly, beginning net position for the component units as a whole has been restated (decreased) by $4,126,788 to remove ABLE School’s beginning net position of $40,063, by $3,424,681 to remove First Coast Technical College, by $64,774 to remove St. Augustine Public Montessori, by ($49,254) to remove St. Paul School of Excellence’s beginning deficit net position, by $386,095 to remove the Therapeutic Learning Center, and by $260,429 to remove St. Johns Community Campus.

The adjustment to component unit beginning net position for the changes in reporting entity is as follows:

Net Position, Beginning, As Previously Reported 4,872,816$ Removal of ABLE School, Inc. 40,063Removal of First Coast Technical Institute, Inc. (DBA First Coast Technical College) 3,424,681Removal of St. Augustine Public Montessori 64,774Removal of St. Paul School of Excellence, Inc. (Deficit) (49,254)Removal of Therapeutic Learning Center 386,095Removal of St. Johns Community Campus 260,429

Net Position, Beginning, As Restated 746,028$



June 30, 2016

III. DETAILED NOTES ON ALL ACTIVITIES AND FUNDS

A. Cash Deposits with Financial Institutions

Custodial Credit Risk-Deposits. In the case of deposits, this is the risk that in the event of a bank failure, the District’s deposits may not be returned to the District. The District does not have a policy for custodial credit risk. All bank balances of the District are fully insured or collateralized as required by Chapter 280, Florida Statutes.

Cash balances from all funds are combined and invested to the extent available. Earnings are allocated monthly to each fund based on average daily balances.

B. Investments

As of June 30, 2016, the District had the following investments and maturities:

Maturities Fair Value

State Board of Administration (SBA): Florida PRIME (1) (2) (3) 58 Day Average 59,912,312$ Debt Service Accounts 6 Months 111,334 Goldman Sachs Financial Square Treasury Obligations Fund (1) (2) 39 Day Average 15,236,337 FEITF (1) 41 Day Average 5,052,040

Total Investments 80,312,023$

Notes: (1)

(2)

(3) Investments totaling $54,702,978 related to receipt of the one-half cent local sales tax and the sales taxrevenue bonds are reported as restricted cash equivalents for financial reporting purposes (See noteIII.K.1).

Investments

Investments w ith original maturities of three months or less are considered cash equivalents for f inancialreporting purposes.

Investments totaling $20,369,951 w ere held under a trust agreement in connection w ith the Certif icates ofParticipation, Series 2006, 2010-QSCB, 2012, 2013, and 2015 financing agreements, and is reported asrestricted cash equivalents for f inancial reporting purposes (See note III.K.1).

Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The District’s investment policy authorizes the investment of temporarily idle funds to earn the maximum return for the period available. The policy also indicates a high priority shall be placed on the safety and liquidity of the funds. The trust agreement in connection with certificates of participation financing arrangements does not specifically limit investment maturities as a means of managing its exposure to fair value losses from increasing interest rates. The Goldman Sachs Financial Square Treasury Obligations Fund money market mutual fund and the FEITF are designed to maintain a $1 per share net asset value and provide immediate liquidity to meet cash flow needs.

Florida PRIME, Goldman Sachs Financial Square Treasury Obligations Fund, and FEITF have a weighted average days to maturity (WAM) of 58 days, 39 days, and 41 days, respectively, at June 30, 2016. A portfolio’s WA reflects the average maturity in days based on final maturity or reset date, in the case of floating rate instruments. WAM measures the sensitivity of the portfolio to interest rate changes.



June 30, 2016

Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Section 218.415(17), Florida Statutes, limits investments to the SBA’s Florida PRIME, or any other intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act as provided in Section 163.01, Florida Statutes; SEC registered money market funds with the highest credit quality rating from a nationally recognized rating agency; interest-bearing time deposits in qualified public depositories, as defined in Section 280.02, Florida Statutes; and direct obligations of the United States Treasury. The District’s investment policy does not further limit its investment choices.

The District’s investment in the FEITF and Florida PRIME was rated AAAm by Standard and Poor’s and the investments in Goldman Sachs Financial Square Treasury Obligations Fund was rated AAAm by Standard and Poor’s and Aaa by Moody’s Investors Service.

The District’s investments in the SBA Debt Service accounts are to provide for debt service payments on bond debt issued by the SBE for the benefit of the District. The District relies on policies developed by the SBA for managing interest rate risk and credit risk for this account.

C. Due From Other Agencies

The $6,293,744 reported as due from other agencies primarily consists of $3,174,126 due from the Department of Revenue related to the one-half cent local sales tax; $1,060,656 due from the Florida Department of Education for remodeling, renovation, maintenance, repair, and site improvement projects of District facilities; $400,715 due from the Florida Department of Education for reimbursement of Federal grant expenditures; and $1,498,383 due from the St. Johns County Board of County Commissioners for the collection of educational impact fees.

D. Land Contribution Receivable

The $9,227,500 reported as land contribution receivable represents the value of a high school property required to be donated to the District, in exchange for future impact fee credits, pursuant to an amended development order for the Twin Creeks Development of Regional Impact (DRI). The District is working with the developer on language regarding an access easement to this property. Accordingly, unearned revenue has been reported in the government-wide statement of net position until the property is conveyed to the District.



June 30, 2016

E. Changes in Capital Assets

Changes in capital assets are presented in the table below:

Beginning Additions Deletions EndingBalance Balance

GOVERNMENTAL ACTIVITIES

Capital Assets Not Being Depreciated:Land 36,703,642$ 13,924,115$ -$ 50,627,757$ Construction in Progress 63,485 8,663,538 - 8,727,023

Total Capital Assets Not Being Depreciated 36,767,127 22,587,653 - 59,354,780

Capital Assets Being Depreciated:Improvements Other Than Buildings 24,849,107 172,349 - 25,021,456 Buildings and Fixed Equipment 645,504,849 1,695,141 - 647,199,990 Furniture, Fixtures, and Equipment 24,454,064 3,091,603 1,285,581 26,260,086 Motor Vehicles 20,948,975 1,037,694 1,375,772 20,610,897 Audio Visual Materials and

Computer Softw are 4,247,870 165,449 65,574 4,347,745

Total Capital Assets Being Depreciated 720,004,865 6,162,236 2,726,927 723,440,174

Less Accumulated Depreciation for:Improvements Other Than Buildings 15,710,148 673,486 - 16,383,634 Buildings and Fixed Equipment 181,039,089 14,671,984 - 195,711,073 Furniture, Fixtures, and Equipment 19,799,208 1,532,181 1,285,581 20,045,808 Motor Vehicles 13,889,565 1,753,631 1,375,772 14,267,424 Audio Visual Materials and

Computer Softw are 4,164,283 86,285 65,574 4,184,994

Total Accumulated Depreciation 234,602,293 18,717,567 2,726,927 250,592,933

Total Capital Assets Being Depreciated, Net 485,402,572 (12,555,331) - 472,847,241

Governmental Activities Capital Assets, Net 522,169,699$ 10,032,322$ -$ 532,202,021$



June 30, 2016

Depreciation expense was charged to functions as follows:

Function Amount

GOVERNMENTAL ACTIVITIESInstruction 10,676,230$ Student Personnel Services 1,370,390 Instructional Media Services 309,259 Instruction and Curriculum Development Services 399,274 Instructional Staff Training Services 329,459 Instruction Related Technology 303,232 School Board 24,194 General Administration 22,988 School Administration 1,135,675 Facilities Acquisition and Construction 94,606 Fiscal Services 122,919 Food Services 415,091 Central Services 279,092 Student Transportation Services 1,753,631 Operation of Plant 782,361 Maintenance of Plant 410,866 Administrative Technology Services 22,590 Community Services 265,710

Total Depreciation Expense - Governmental Activities 18,717,567$

F. Retirement Plans

1. Florida Retirement System (FRS) – Defined Benefit Pension Plans

General Information about the FRS

The FRS was created in Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any state-administered retirement system in paying the costs of health insurance.

Essentially all regular employees of the District are eligible to enroll as members of the State-administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A



June 30, 2016

comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services’ website www.dms.myflorida.com.

The District’s pension expense totaled $9,800,089 for the fiscal year ended June 30, 2016.

FRS Pension Plan

Plan Description. The FRS Pension Plan (Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows:

Regular Class – Members of the FRS who do not qualify for membership in the other classes.

Elected County Officers Class – Members who hold specified elective offices in local government.

Senior Management Service Class (SMSC) – Members in senior management level positions.

Employees enrolled in the Plan prior to July 1, 2011, vest at six years of creditable service and employees enrolled in the Plan on or after July 1, 2011, vest at eight years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service. All members enrolled in the Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service. Members of the Plan may include up to 4 years of credit for military service toward creditable service. The Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants.

DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the Plan to defer receipt of monthly benefit payments while continuing employment with an FRS employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits.

Benefits Provided. Benefits under the Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the five highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the eight highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was



June 30, 2016

earned. Members are eligible for in-line-of-duty or regular disability and survivors’ benefits. The following chart shows the percentage value for each year of service credit earned:

Class, Initial Enrollment, and Retirement Age/Years of Service % Value

Regular Class members initially enrolled before July 1, 2011 Retirement up to age 62 or up to 30 years of service 1.60 Retirement at age 63 or with 31 years of service 1.63 Retirement at age 64 or with 32 years of service 1.65 Retirement at age 65 or with 33 or more years of service 1.68

Regular Class members initially enrolled on or after July 1, 2011 Retirement up to age 65 or up to 33 years of service 1.60 Retirement at age 66 or with 34 years of service 1.63 Retirement at age 67 or with 35 years of service 1.65 Retirement at age 68 or with 36 or more years of service 1.68

Elected County Officers 3.00

Senior Management Service Class 2.00

As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement.

Contributions. The Florida Legislature establishes contribution rates for participating employers and employees. Contribution rates during the 2015-16 fiscal year were as follows:

Class Employee Employer (1)

FRS, Regular 3.00 7.26FRS, Elected County Officers 3.00 42.27FRS, Senior Management Service 3.00 21.43DROP - Applicable to Members from All of the Above Classes 0.00 12.88FRS, Reemployed Retiree (2) (2)

Notes: (1)

(2)

Employer rates include 1.66 percent for the postemployment health insurancesubsidy. Also, employer rates, other than for DROP participants, include 0.04percent for administrative costs of the Investment Plan.Contribution rates are dependent upon retirement class in which reemployed.

Percent of Gross Salary

The District’s contributions, including employee contributions, to the Plan totaled $9,965,075 for the fiscal year ended June 30, 2016. This excludes the HIS defined benefit pension plan contributions.



June 30, 2016

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows

of Resources Related to Pensions. At June 30, 2016, the District reported a liability of $54,551,392 for its proportionate share of the Plan’s net pension liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2015. The District’s proportionate share of the net pension liability was based on the District’s 2015-16 fiscal year contributions relative to the 2014-15 fiscal year contributions of all participating members. At June 30, 2015, the District’s proportionate share was .422344002 percent, which was an increase of .016313957 from its proportionate share measured as of June 30, 2014.

For the fiscal year ended June 30, 2016, the District recognized pension expense of $4,746,028 related to the Plan. In addition, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Description

Differences between expected and actual experience $ 5,734,803 $ (1,269,053) Change of assumptions 3,620,759 Net difference between projected and actual earnings on FRS pension plan investments (13,025,960) Changes in proportion and differences between District FRS contributions and proportionate share of contributions 4,041,428 District FRS contributions subsequent to the measurement date 9,965,075

Total $ 23,362,065 $ (14,295,013)

Deferred Outflowsof Resources

Deferred Inflowsof Resources

The deferred outflows of resources related to pensions, totaling $9,965,075, resulting from District contributions to the Plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Fiscal Year Ending June 30

2017 $ (3,552,901) 2018 (3,552,901) 2019 (3,552,901) 2020 7,193,922 2021 2,011,486 Thereafter 555,272 Total $ (898,023)

Amount



June 30, 2016

Actuarial Assumptions. The total pension liability in the July 1, 2015 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation 2.60 percentSalary Increases 3.25 percent, average, including inflationInvestment rate of return 7.65 percent, net of pension plan investment expense,

including inflation

Mortality rates were based on the Generational RP-2000 with Projection Scale BB.

The actuarial assumptions used in the July 1, 2014, valuation were based on the results of an actuarial experience study for the period July 1, 2008, through June 30, 2013.

The long-term expected rate of return on pension plan investments was not based on historical returns, but instead is based on a forward-looking capital market economic model. The allocation policy’s description of each asset class was used to map the target allocation to the asset classes shown below. Each asset class assumption is based on a consistent set of underlying assumptions, and includes an adjustment for the inflation assumption. The target allocation and best estimates of arithmetic and geometric real rates of return for each major asset class are summarized in the following table:

CompoundAnnual Annual

Target Arithmetic (Geometric) StandardAsset Class Allocation (1) Return Return Deviation

Cash 1% 3.2% 3.1% 1.7%Fixed Income 18% 4.8% 4.7% 4.7%Global Equity 53% 8.5% 7.2% 17.7%Real Estate (Property) 10% 6.8% 6.2% 12.0%Private Equity 6% 11.9% 8.2% 30.0%Strategic Investments 12% 6.7% 6.1% 11.4%

Total 100%

Assumed inflation - Mean 2.6% 1.9%

Note: (1) As outlined in the Plan's investment policy

Discount Rate. The discount rate used to measure the total pension liability was 7.65 percent. The Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the discount rate for calculating the total pension liability is equal to the long-term expected rate of return.



June 30, 2016

Sensitivity of the District’s Proportionate Share of the Net Position Liability to Changes in the

Discount Rate. The following presents the District’s proportionate share of the net pension liability calculated using the discount rate of 7.65 percent, as well as what the District’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.65 percent) or 1-percentage-point higher (8.65 percent) than the current rate:

1% Current 1%Decrease Discount Rate Increase(6.65%) (7.65%) (8.65%)

District's proportionate share of the net pension liability 141,354,995$ 54,551,392$ (17,683,463)$

Pension Plan Fiduciary Net Position. Detailed information about the Plan’s fiduciary net position is available in the separately issued FRS Pension Plan and Other State Administered Systems Comprehensive Annual Financial Report.

Payables to the Pension Plan. At June 30, 2016, the District reported a payable of $1,634,659 for the outstanding amount of contributions to the Plan required for the fiscal year ended June 30, 2016.

HIS Pension Plan

Plan Description. The HIS Pension Plan (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Division of Retirement within the Florida Department of Management Services.

Benefits Provided. For the fiscal year ended June 30, 2016, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare.

Contributions. The HIS Plan is funded by required contributions from FRS participating employers as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS members. For the fiscal year ended June 30, 2016, the contribution rate was 1.66 percent of payroll pursuant to section 112.363, Florida Statues. The District contributed 100 percent of its statutorily required contributions for the current and preceding three years. HIS Plan contributions are deposited in a separate trust fund from which payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual legislative appropriation. In the event the legislative appropriation or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or canceled.



June 30, 2016

The District’s contributions to the HIS Plan totaled $2,994,840 for the fiscal year ended June 30, 2016.

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows

of Resources Related to Pensions. At June 30, 2016, the District reported a net pension liability of $58,883,581 for its proportionate share of the HIS Plan’s net pension liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2015. The District’s proportionate share of the net pension liability was based on the District’s 2014-15 fiscal year contributions relative to the total 2014-15 fiscal year contributions of all participating members. At June 30, 2015, the District’s proportionate share was .577379055 percent, which was an increase of .026157688 from its proportionate share measured as of June 30, 2014.

For the fiscal year ended June 30, 2016, the District recognized pension expense of $5,054,061 related to the HIS Plan. In addition, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred OutflowsDescription of Resources

Change of assumptions 4,632,651$ Net difference between projected and actual earnings on HIS pension plan investments 31,825 Changes in proportion and differences between District HIS contributions and proportionate share of HIS contributions 3,797,099 District contributions subsequent to the measurement date 2,994,307

Total 11,455,882$

The deferred outflows of resources related to pensions, totaling $2,994,307, resulting from District contributions to the HIS Plan subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Fiscal Year Ending June 30

2017 $ 1,419,193 2018 1,419,193 2019 1,419,193 2020 1,412,714 2021 1,409,604 Thereafter 1,381,678 Total $ 8,461,575

Amount



June 30, 2016

Actuarial Assumptions. The total pension liability in the July 1, 2015, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation 2.60 percentSalary Increases 3.25 percent, average, including inflationMunicipal Bond Rate 3.80 percent

Mortality rates were based on the Generational RP-2000 with Projected Scale BB.

The actuarial assumptions used in the July 1, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2008, through June 30, 2013.

Discount Rate. The discount rate used to measure the total pension liability was 3.80 percent, which is a reduction from 4.29 percent used at the preceding measurement date. In general, the discount rate for calculating the total pension liability is equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit payments prior to the projected depletion date. Because the HIS benefit is essentially funded on a pay-as-you-go basis, the depletion date is considered to be immediate, and the single equivalent discount rate is equal to the municipal bond rate selected by the HIS Plan sponsor. The Bond Buyer General Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipal bond index.

Sensitivity of the District’s Proportionate Share of the Net Pension Liability to Changes in the

Discount Rate. The following presents the District’s proportionate share of the net pension liability calculated using the discount rate of 3.80 percent, as well as what the District’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.80 percent) or 1-percentage-point higher (4.80 percent) than the current rate:

1% Current 1%Decrease Discount Rate Increase(2.80%) (3.80%) (4.80%)

District's proportionate share of the net pension liability 67,095,100$ 58,883,581$ 52,036,407$

Pension Plan Fiduciary Net Position. Detailed information about the HIS Plan’s fiduciary net position is available in the separately issued FRS Pension Plan and Other State Administered Systems Comprehensive Annual Financial Report.

Payables to the Pension Plan. At June 30, 2016, the District reported a payable of $371,560 for the outstanding amount of contributions to the HIS Plan required for the fiscal year ended June 30, 2016.



June 30, 2016

2. FRS – Defined Contribution Pension Plan

The SBA administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report.

As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined-benefit plan. District employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering the plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04 percent of payroll and by forfeited benefits of plan members. Allocations to the investment member’s accounts during the 2015-16 fiscal year were as follows:

Percent ofGross

Class Compensation

FRS, Regular 6.30FRS, Elected County Officers 11.34FRS, Senior Management Service 7.67

For all membership classes, employees are immediately vested in their own contributions and are vested after one year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Nonvested employer contributions are placed in a suspense account for up to five years. If the employee returns to FRS-covered employment within the five year period, the employee will regain control over their account. If the employee does not return within the five year period, the employee will forfeit the accumulated account balance. Costs of administering the Investment Plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04 percent of payroll and by forfeited benefits of Investment Plan members. For the fiscal year ended June 30, 2016, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the District.



June 30, 2016

After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income.

The District’s Investment Plan pension expense totaled $1,971,488 for the fiscal year ended June 30, 2016.

Payables to the Pension Plan. At June 30, 2016, the District reported a payable of $336,997 for the outstanding amount of contributions to the Investment Plan required for the fiscal year ended June 30, 2016.

G. Other Postemployment Benefit Obligations

Plan Description. The Other Postemployment Benefits Plan (OPEB Plan) is a single-employer defined benefit plan administered by the District. Pursuant to the provisions of Section 112.0801, Florida Statutes, employees who retire from the District, and their eligible dependents, are eligible to participate in the District’s self-insured health and hospitalization plan for medical, prescription drug, dental, and vision coverage. The District subsidizes the premium rates paid by retirees by allowing them to participate in the OPEB Plan at reduced or blended group (implicitly subsidized) premium rates for both active and retired employees. These rates provide an implicit subsidy for retirees because, on an actuarial basis, their current and future claims are expected to result in higher costs to the OPEB Plan on average than those of active employees. Additionally, certain retirees receive insurance coverage at a lower (explicitly subsidized) premium rate than active employees. Benefits under this plan are provided for a fixed number of years determined at the time of retirement based on the number of years worked for the District. Retirees are assumed to enroll in the Federal Medicare program for their primary coverage as soon as they are eligible. The OPEB Plan does not issue a stand-alone report, and is not included in the report of a public employee retirement system or other entity.

Funding Policy. Plan contribution requirements of the District and OPEB Plan members are established and may be amended through recommendations of the Insurance Committee and action from the Board. The District has not advance-funded or established a funding methodology for the annual OPEB costs or the net OPEB obligation, and the OPEB Plan is financed on a pay-as-you-go basis. For the 2015-16 fiscal year, 293 retirees received other postemployment benefits. The District provided required contributions of $1,498,277 toward the annual OPEB cost, net of retiree contributions totaling $2,365,863, which represents 1.9 percent of covered payroll.

Annual OPEB Cost and Net OPEB Obligation. The District’s annual OPEB cost (expense) is calculated based on the annual required contribution (ARC), an amount actuarially determined in accordance with parameters of GASB Statement No. 45, Accounting and Financial Reporting



June 30, 2016

by Employers for Postemployment Benefits Other Than Pensions. The ARC represents a level of funding that if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed 30 years. The following table shows the District's annual OPEB cost for the fiscal year, the amount actually contributed to the OPEB Plan, and changes in the District's net OPEB obligation:

Description Amount

Normal Cost (service cost for one year) 1,401,014$ Amortization of Unfunded Actuarial Accrued Liability 1,320,714

Annual Required Contribution 2,721,728 Interest on Net OPEB Obligation 1,719,657 Adjustment to Annual Required Contribution (2,866,095)

Annual OPEB Cost (Expense) 1,575,290 Contribution Toward the OPEB Cost (1,498,277)

Increase in Net OPEB Obligation 77,013 Net OPEB Obligation, Beginning of Year 57,321,892

Net OPEB Obligation, End of Year 57,398,905$

The District’s annual OPEB cost, the percentage of annual OPEB cost contributed to the OPEB Plan, and the net OPEB obligation as of June 30, 2016, and the two preceding fiscal years, were as follows:

Fiscal Year Annual Amount Percentage of Net OPEBOPEB Cost Contributed Annual Obligation

OPEB CostContributed

2013-14 $4,523,681 $1,872,824 41.4% $53,962,0572014-15 4,732,900 1,373,065 29.0% 57,321,8922015-16 1,575,290 1,498,277 95.1% 57,398,905

Funded Status and Funding Progress. As of January 1, 2016, the most recent valuation date, the actuarial accrued liability for benefits was $26,026,761, and the actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability of $26,026,761, and a funded ratio of 0 percent. The covered payroll (annual payroll of active participating employees) was $145,568,515, and the ratio of the unfunded actuarial accrued liability to the covered payroll was 17.9 percent.

Actuarial valuations of an ongoing OPEB Plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future.



June 30, 2016

Examples include assumptions about future employment and termination, mortality, and healthcare cost trends. Amounts determined regarding the funded status of the OPEB Plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The required schedule of funding progress immediately following the notes to financial statements presents multiyear trend information about whether the actuarial value of OPEB Plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.

Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive OPEB Plan provisions, as understood by the employer and participating members, and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and participating members. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.

The District’s OPEB actuarial valuation as of January 1, 2016, used the entry age normal cost actuarial method to estimate the unfunded actuarial liability as of June 30, 2016, and the District’s 2015-16 fiscal year annual required contribution. Because the OPEB liability is currently unfunded, the actuarial assumptions included a 3 percent rate of return on invested assets, which is the District’s long-term expectation of investment returns under its investment policy. The actuarial assumptions also included a payroll growth rate of 3 percent per year, projected salary increase of 3.70 to 7.80 percent, and an annual healthcare cost trend rate of 7 percent beginning January 1, 2016, reduced by 0.5 percent the next year, and 0.25 percent the following year, for the Federal excise tax on high-cost employer health plans. The investment rate of return and projected salary increase rates include a general price inflation of 3 percent. The unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on a closed basis. The remaining amortization period at June 30, 2016, was 20 years.

H. Special Termination Benefits

The Board provides for the payment of special retirement benefits to qualifying employees as follows:

The Board provides for the payment of a special termination incentive to administrative, managerial, and confidential employees hired prior to January 2, 2002. The incentive is equal to 1 percent of final salary times the number of years of St. Johns County District School Board service or $10,000, whichever is greater, provided that the employee retires by the end of the first fiscal year of eligibility. Employees hired on or after January 2, 2002, are not eligible for the retirement incentive, and employees hired before that date and reclassified from another category are eligible for an incentive equal to 1 percent of final salary times the number of years of St. Johns County District School Board service or $10,000, whichever is less, provided that the employee retires by the end of the first fiscal year of eligibility.

The Board’s collective bargaining agreement with St. Johns Education Association provides for the payment of a special retirement incentive of 30 percent of final salary or $10,000, whichever is greater, for instructional employees who retire with a minimum of 10



June 30, 2016

years of service, provided that the employee retires by the end of the first fiscal year of eligibility.

The Board’s collective bargaining agreement with the St. Johns Educational Support Professionals Association provides for the payment of special retirement benefits to noninstructional employees upon retirement of $3,000 for employees with 15 years of services and an additional $250 for each year of service beyond 15 years, up to a maximum of 30 years of service.

In addition to payments for accrued leave and regular termination benefits, the District reported expenditures for special termination benefits, totaling $792,777 during the 2015-16 fiscal year.

I. Construction and Other Significant Commitments

Encumbrances. Appropriations in governmental funds are encumbered upon issuance of purchase orders for goods and services. Even though appropriations lapse at the end of the fiscal year, unfilled purchase orders of the current year are carried forward and the next year's appropriations are likewise encumbered.

The following is a schedule of encumbrances at June 30, 2016:

General

Capital Projects -Local Capital Improvement

Fund

Capital Projects - Other Capital

Projects

1,031,240$ 5,850,659$ 7,363,934$ 439,561$ 14,685,394$

Nonmajor Governmental

Funds

Total Governmental

Funds

Major Funds



June 30, 2016

Construction Contracts. Encumbrances include the following major construction contract commitments at fiscal year-end:

Project Contract Completed BalanceAmount to Date Committed

Crookshank Elementary Expansion: Architect 240,000$ 218,393$ 21,607$ Contractor 4,070,067 3,700,587 369,480 Direct Purchases 1,393,149 1,348,863 44,286 Sub Total 5,703,216 5,267,843 435,373

Nease High School Expansion: Architect 1,050,000 787,500 262,500 Contractor 12,000,000 525,168 11,474,832 Direct Purchases 10,248 10,248 - Sub Total 13,060,248 1,322,916 11,737,332

New Elementary School "M" Architect 555,080 361,812 193,268 Contractor 19,599,000 - 19,599,000 Sub Total 20,154,080 361,812 19,792,268

New K-8 School "KK" Architect 1,105,275 652,112 453,163

New K-8 School "LL" Architect 1,174,275 729,482 444,793

Total 41,197,094$ 8,334,165$ 32,862,929$

J. Risk Management Programs

The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The District has established self-insurance programs for its employee health and hospitalization and its workers' compensation liability coverage. For workers’ compensation and most of its other insurance coverage, effective July 1, 2008, the District participates in a group self-insurance program administered by the Florida School Boards Association, Inc. The District’s covered risks relating to property protection, general liability, automobile liability, workers’ compensation, money and securities, employee fidelity and faithful performance, boiler and machinery, and other coverage deemed necessary by the members are included in the group program.

Section 1001.42(12)(k), Florida Statutes, provides the authority for the District to enter into such a risk management program. The program is self-sustaining through member assessments (premiums), and purchases coverage through commercial companies for claims in excess of specified amounts. The Board of Directors for the program is composed of one board member



June 30, 2016

from each participating district and a superintendent and district-level business officer selected from one of the participating districts.

The District’s health and hospitalization self-insurance program, which includes medical, dental, and vision coverage, is being provided on a self-insured basis up to specified limits. The District has entered into an agreement with an insurance company to provide specific excess coverage of claims amounts above $350,000 per insured, and laser coverage on one member of $775,000 per year. The program’s administrator has been approved by the Florida Department of Financial Services, Office of Insurance Regulation. The funds for these coverages were established in accordance Chapter 112, Florida Statutes. The program is administered through the Internal Service Funds. Contributions to the program were made by the District and the First Coast Technical College, and covered by current and former employees and retirees of the District and the First Coast Technical College.

A liability in the amount of $2,399,132 was actuarially determined for estimated insurance claims payable for claims incurred, but not reported for health and hospitalization coverage.

The following schedule represents the changes in claims liability for the past two fiscal years for the District’s health and hospitalization self-insurance program:

Fiscal Beginning-of- Current-Year Claims Balance atYear Fiscal-Year Claims and Payments Fiscal

Liability Changes in Year-EndEstimates

2014-15 2,798,588$ 33,091,451$ (33,049,783)$ 2,840,256$ 2015-16 2,840,256 27,918,640 (28,359,764) 2,399,132

The Board established a self-insurance program to provide workers’ compensation coverage for its employees for claims incurred prior to June 30, 2008. The District’s liability was limited by excess insurance to $150,000 or $250,000 per occurrence, depending on the year of occurrence, and by aggregate excess insurance per plan year, ranging from $1,000,000 to $3,211,800, except for the 2004-05 plan year, for which aggregate excess insurance was not purchased. For claims incurred on or after July 1, 2008, the District’s workers’ compensation coverage was administered by the Florida School Boards Association program.

A liability in the amount of $571,035 was actuarially determined to for estimated insurance claims payable for claims incurred, but not reported for workers’ compensation coverage.



June 30, 2016

The following schedule represents the changes in the liability for the past two fiscal years for the District’s workers’ compensation program:

Fiscal Beginning-of- Current-Year Claims Balance atYear Fiscal-Year Claims and Payments Fiscal

Liability Changes in Year-EndEstimates

2014-15 735,528$ 101,849$ (142,894)$ 694,483$ 2015-16 694,483 44,170 (167,618) 571,035

Settled claims resulting from these risks have not exceeded commercial coverage in any of the past three fiscal years.

K. Long-Term Liabilities

1. Certificates of Participation

Certificates of participation at June 30, 2016, are as follows:

Amount Interest Lease OriginalOutstanding Rates Term Amount

(Percent) Maturity

16,000,000$ 4.94 (1) 2027 16,000,000$ 3,840,000 1.08 2018 9,510,000

29,895,000 3.00 - 5.00 2033 33,480,000 Series 2015, Refunding 54,845,000 5.00 2021 54,845,000

104,580,000$ 113,835,000$

Note: (1)

Total Certificates of Participation

The Series 2010-QCSBs (Qualified School Construction Bonds) are primarily principal only bonds,repaid by the District. The QSCBs were issued as direct subsidy bonds, whereby the District pays thefull amount of taxable interest to the lender and then files for a direct cash subsidy payment from theUnited States Treasury. Beginning with the 2013-14 fiscal year, the direct subsidy interest paymentsfrom the United States Treasury were reduced by 8.7 percent, from 4.94 percent to 4.51 percent.

Series

Series 2010-QSCBSeries 2012, RefundingSeries 2013

The District entered into a master financing arrangement on November 15, 2003, characterized as a lease-purchase agreement, with the St. Johns County School Board Leasing Corporation (Leasing Corporation) whereby the District secured financing of various educational facilities. The financing was accomplished through the issuance of certificates of participation to be repaid from the proceeds of rents paid by the District.

As a condition of the financing arrangement, the District gave a ground lease on District properties to the Leasing Corporation, with a rental fee of $10 per year. The properties



June 30, 2016

covered by the ground leases are, together with the improvements constructed thereon from the financing proceeds, leased back to the District. If the District fails to renew the leases and to provide for the rent payments through to term, the District may be required to surrender the properties included under the Ground Lease Agreements for the benefit of the securers of the certificates for the remaining term of the ground leases or until the certificates are paid in full.

The QSCBs were issued through the ARRA on September 20, 2010. For the Series 2010-QSCB, the principal portion of the basic lease payment, $16,000,000, is due on September 1, 2027. The sinking fund payments are due annually on September 1, commencing on September 1, 2011. The Series 2010-QSCB sinking fund payments made by the District will be deposited by the Trustee into the Series 2010 Sinking Fund Account pursuant to the Trust Agreement. Such funds will be invested in permitted investments in accordance with the Trust Agreement. The Board may offset sinking fund payments with the interest earnings on amounts in the Sinking Fund Account and must make supplemental payments to the Sinking Fund Account to cure any deficiency between the amount on deposit and the required scheduled amount. Sinking fund payments on deposit in the Sinking Fund Account will be retained therein until transferred to the Series 2010 Principal Account and applied to the payment of the $16,000,000 principal component due on the Series 2010-QSCB Certificates at maturity (September 1, 2027) or upon earlier payment. The QSCBs are primarily issued as principal only and provide for a direct cash subsidy payment from the United States Treasury for the interest. Beginning with the 2013-14 fiscal year, the direct subsidy interest payments from the United States Treasury was reduced by 8.7 percent, from 4.94 percent to 4.51 percent.

A summary of the lease terms are as follows:

Certificates Lease Term

Series 2010-QSCB Earlier of the date paid in full or September 1, 2027Series 2012, Refunding Earlier of the date paid in full or July 1, 2018Series 2013 Earlier of the date paid in full or July 1, 2033Series 2015, Refunding Earlier of the date paid in full or July 1, 2021



June 30, 2016

The District properties included in the ground lease under this arrangement include:

Certificates Description of Properties

Series 2010-QSCB Construction of Palencia Elementary and Valley Ridge Academy

Series 2012, Refunding Construction of Timberlin Creek Elementary School and South Woods Elementary School

Series 2013 Construction of Patriot Oaks Academy and Valley Ridge Academy

Series 2015, Refunding Construction of Wards Creek Elementary School, Pacetti Bay Middle School, a Ninth Grade Center at the Existing Bartram Trail High School, Ponte Vedra High School, and Creekside High School

Except for the QSCBs, the lease payments are payable by the District semiannually, on July 1 and January 1, and must be remitted as of the 15th day of the month preceding the payment dates. The QSCB lease payments are payable March 1 and September 1. The following is a schedule by years of future minimum lease payments under the lease agreement together with the present value of minimum lease payments as of June 30:

Fiscal Year Ending June 30 Total Principal Interest

2017 $17,825,310 $13,090,000 $4,735,3102018 17,825,782 13,645,000 4,180,782 2019 15,869,988 12,270,000 3,599,988 2020 15,876,488 12,890,000 2,986,488 2021 15,871,988 13,530,000 2,341,988 2022-2026 16,031,938 8,410,000 7,621,938 2027-2031 29,261,925 26,155,000 3,106,925 2032-2033 4,832,375 4,590,000 242,375

Total Minimum Lease Payments 133,395,794$ 104,580,000$ 28,815,794$



June 30, 2016

2. Bonds Payable

Bonds payable at June 30, 2016, are as follows:

Amount Interest AnnualBond Type Outstanding Rates Maturity

(Percent) To

State School Bonds:Series 2006A 325,000$ 4.250 - 4.625 2026

Series 2008A 1,115,000 4.25 - 5.00 2028 Series 2009A, Refunding 320,000 5.0 2019

Series 2009A 540,000 4.0 - 5.0 2029Series 2010A 640,000 3.5 - 5.0 2030Series 2011A, Refunding 250,000 3.0 - 5.0 2023

Series 2014A, Refunding 502,000 3.0 - 5.0 2025Series 2014B, Refunding 1,089,000 2.0 - 5.0 2020

Total State School Bonds 4,781,000

District Sales Tax Revenue Bonds Series 2016 42,755,000 Total Bonds Payable 47,536,000$

The various bonds were issued to finance capital outlay projects of the District. The following is a description of the bonded debt issues:

State School Bonds

These bonds are issued by the State Board of Education on behalf of the District. The bonds mature serially, and are secured by a pledge of the District’s portion of the State-assessed motor vehicle license tax. The State’s full faith and credit is also pledged as security for these bonds. Principal and interest payments, investments of Debt Service Fund resources, and compliance with reserve requirements are administered by the State Board of Education and the State Board of Administration.

District Sales Tax Revenue Bonds

These bonds are generally referred to as Sales Tax Revenue Bonds, Series 2016, and are authorized by Chapter 212, 1001, and 1013, Florida Statutes, and a resolution of the District School Board dated January 12, 2016, authorizing the bond issue. These bond proceeds were issued to finance the cost of construction and equipping of a new K-8 school and a new elementary school. These bonds are secured by a one-half cent local sales surtax, authorized on November 3, 2015, by majority voter approval of a District School Board resolution dated June 30, 2015, proposing the discretionary sales surtax. As provided by the bond resolution, the District is not required to maintain a reserve account.

The District recognized sales surtax revenue totaling $8,791,558 during fiscal year 2016; debt service requirements for Series 2016, Sales Tax Revenue Bonds begin in fiscal year 2017. The pledge of sales surtax revenue for this debt service is through debt maturity.



June 30, 2016

Annual requirements to amortize all bonded debt outstanding as of June 30, 2016, are as follows:

Fiscal Year Ending June 30 Total Principal Interest

State School Bonds:2017 979,868$ 758,000$ 221,868$ 2018 995,578 811,000 184,578 2019 545,215 401,000 144,215 2020 443,621 319,000 124,621 2021 392,988 282,000 110,988 2022-2026 1,824,736 1,475,000 349,736 2027-2030 799,088 735,000 64,088

Total State School Bonds 5,981,094 4,781,000 1,200,094

District Sales Tax Revenue Bonds:2016 54,653,010 42,755,000 11,898,010

Total 60,634,104$ 47,536,000$ 13,098,104$

3. Changes in Long-Term Liabilities

The following is a summary of changes in long-term liabilities:

Description Beginning Additions Deductions Ending Due InBalance Balance One Year

GOVERNMENTAL ACTIVITIES

Certif icates of Participation Payable: Certif icates of Participation 117,990,000$ -$ 13,410,000$ 104,580,000$ 13,090,000$

Unamortized Premium 7,215,953 - 1,202,659 6,013,294 1,202,659

Total Certif icates of Participation Payable 125,205,953 - 14,612,659 110,593,294 14,292,659

Bonds Payable District Sales Tax Revenue Bonds - 42,755,000 - 42,755,000 2,220,000

Unamortized Premium - 7,717,720 771,772 6,945,948 771,772

Total District Sales Tax Revenue Bonds 50,472,720 771,772 49,700,948 2,991,772

State School Bonds 5,487,000 - 706,000 4,781,000 758,000

Total Bonds Payable 5,487,000 50,472,720 1,477,772 54,481,948 3,749,772

Other Long-Term Liabilities: Estimated Insurance Claims Payable 694,483 44,170 167,618 571,035 167,618

Compensated Absences Payable 25,812,313 1,932,319 2,068,372 25,676,260 2,068,372

Postemployment Health Care Benefits Payable 57,321,892 1,575,290 1,498,277 57,398,905 -

Net Pension Liability 76,314,347 49,624,833 12,504,207 113,434,973 2,162,287

Total Governmental Activities 290,835,988$ 103,649,332$ 32,328,905$ 362,156,415$ 22,440,708$



June 30, 2016

For the governmental activities, compensated absences and other postemployment benefits are generally liquidated with resources of the General Fund. The estimated insurance claims are generally liquidated with the resources of the proprietary fund.

L. Net Position – Net Investment in Capital Assets

In the government-wide Statement of Net Position, the difference between total assets and total liabilities is net position. Generally accepted accounting principles require that net position be subdivided into the following three categories: net investment in capital assets; restricted net position; and unrestricted net position.

The composition of net investment in capital assets as of June 30, 2016, is shown in the table below:

Description Amount

Total Capital Assets, Net of Accumulated Depreciation 532,202,021$

Plus Deferred Outflow for Net Carrying Amount of Debt Refunding 2,624,183 Less Related Debt, Net of Unspent Proceeds: Bonds Payable 54,481,948$ Certificates of Participation Payable 110,593,294 Unspent Debt Proceeds (48,840,318) Total Related Debt, Net of Unspent Proceeds (116,234,924)

Total Net Investment in Capital Assets 418,591,280$



June 30, 2016

M. Fund Balance Reporting

The following is a schedule of fund balances by category at June 30, 2016:

General

Debt Service - Other Debt

Service

Capital Projects -Local Capital Improvement

Fund

Capital Projects -Other Capital

Projects

Fund Balances: Nonspendable: Inventories 458,604$ $ $ $ 214,125$ 672,729$ Prepaids 80,160 80,160

Total Nonspendable 458,604 294,285 752,889

Restricted for: State Required Carryover Programs 616,695 616,695 Full Service Schools 120,144 120,144 Food Service 1,016,657 1,016,657 Debt Service 3,417,851 4,828,058 8,245,909 Capital Projects 26,736,400 112,611,796 1,727,369 141,075,565

Total Restricted Fund Balance 736,839 3,417,851 26,736,400 112,611,796 7,572,084 151,074,970

Committed for: Economic Stabilization 7,853,547 7,853,547 0.25 Discretionary Millage 642,952 642,952

Total Committed Fund Balance 8,496,499 8,496,499

Assigned for: 2016-17 Budget Shortfalls 17,873,513 17,873,513 Local Programs and Services 5,852,759 5,852,759 Extended Day Programs 3,489,966 3,489,966 School and Department Purchase Obligations 289,308 289,308 School Concurrency 84,172 84,172

Total Assigned Fund Balance 27,589,718 27,589,718

Unassigned Fund Balance 5,802,555 (80,160) 5,722,395

Total Fund Balances 43,084,215$ 3,417,851$ 26,736,400$ 112,611,796$ 7,786,209$ 193,636,471$

Major Funds

Nonmajor Governmental

Funds

Total Governmental

Funds

The fund balance categories are discussed in the Fund Balance Policies note disclosure I.F.11.



June 30, 2016

N. Interfund Receivables and Payables

The following is a summary of interfund receivables and payables reported in the fund financial statements:

FundsReceivables Payables

Major: General 738,979$ 1,295$ Nonmajor Governmental 663,081 Agency 1,295 75,898

Total 740,274$ 740,274$

Interfund

Interfund balances generally arise due to the District’s General Fund paying for goods or services on behalf of other District funds. The interfund amounts represent temporary loans from one fund to another and are expected to be repaid within one year.

O. Revenues and Expenditures/Expenses

1. Schedule of State Revenue Sources

The following is a schedule of the District’s State revenue sources for the 2015-16 fiscal year:

Source Amount

Florida Education Finance Program (FEFP): Transportation 8,681,526$ Supplemental Academic Instruction 6,890,657 Instructional Materials 2,963,504 Comprehensive Reading Plan 1,683,248 Safe Schools 586,933 Florida Teachers Lead 603,103 Digital Classrooms Allocation 801,192 Other FEFP 65,160,669 Categorical Educational Program - Class Size Reduction 38,373,022 Workforce Development Program 4,455,931 School Recognition 3,084,279 Motor Vehicle License Tax (Capital Outlay and Debt Service) 1,418,170 Best and Brightest Teacher Scholarship Program 800,858 Voluntary Prekindergarten 770,043 Gross Receipts Tax (Public Education Capital Outlay) 503,106 Sales Tax Distribution (Formerly Racing Commission Funds) 206,750 Mobile Home License Tax 68,076 Food Service Supplement 63,658 Miscellaneous 292,791

Total 137,407,516$

Accounting policies relating to certain State revenue sources are described in note I.G.2.



June 30, 2016

2. Property Taxes

The following is a summary of millages and taxes levied on the 2015 tax roll for the 2015-16 fiscal year:

Millages Taxes LeviedGENERAL FUND

Nonvoted School Tax: Required Local Effort 4.980 109,687,180$ Basic Discretionary Local Effort 0.748 16,475,102

CAPITAL PROJECTS FUNDS

Nonvoted Tax: Local Capital Improvements 1.500 33,038,307

TOTAL 7.228 159,200,589$

Actual property taxes collected totaled 96.0 percent of total taxes levied. The St. Johns County Tax Collector is not required by law to make an accounting to the School Board of the difference between taxes levied and taxes collected. However, because of discounts allowed for early payments and other reasons for non-collection, the School Board budget estimates an anticipated 4 percent shortfall between taxes levied and taxes collected.

P. Interfund Transfers

The following is a summary of interfund transfers reported in the fund financial statements:

FundsTransfers In Transfers Out

Major: General 6,772,911$ -$ Other Debt Service 17,894,242

Capital Projects: Local Capital Improvement Fund 16,452,476 Other Capital Projects 8,216,739 Nonmajor Governmental 1,002,062 1,000,000

Total 25,669,215$ 25,669,215$

Interfund



June 30, 2016

Interfund transfers represent permanent transfers of monies between funds. The transfers out of the Capital Projects – Local Capital Improvement Fund were to provide for debt service payments, property insurance premiums, and to fund certain expenditures of the District’s facilities, and maintenance departments. The transfers out of the Capital Projects – Other Capital Projects Fund was to transfer revenue to the General Fund for subsequent disbursement to charter schools and to provide for debt service payments. The transfers out of the nonmajor governmental funds were to reimburse the General Fund for expenses related to school food service operations.

IV. INTERNAL SERVICE FUNDS

The following is a summary of financial information as reported in the internal service funds for the 2015-16 fiscal year:

Group Group Group Workers' TotalMedical Dental Vision Compensation

Insurance Insurance Insurance LiabilityInsurance

Total Assets 12,172,854$ 1,792,597$ 1,193,496$ 5,190,464$ 20,349,411$

Liabilities and Net Position:Salary & Benefit Payable 380$ -$ -$ 875$ 1,255$ Accounts Payable 2,125,714 - 28,601 284 2,154,599 Payroll Deductions Payable Payable 157 - - 145 302 Estimated Insurance Claims Payable 2,091,300 254,277 53,555 571,035 2,970,167 Net Position: Net Investment in Capital Assets 239,445 - - - 239,445 Unrestricted Net Position 7,715,858 1,538,320 1,111,340 4,618,125 14,983,643

Total Liabilities and Net Position 12,172,854$ 1,792,597$ 1,193,496$ 5,190,464$ 20,349,411$

Revenues:Insurance Premiums 46,395,695$ 2,797,138$ 777,048$ 1,347,490$ 51,317,371$ Interest Revenue 24,292 5,977 3,577 11,929 45,775

Total Revenues 46,419,987 2,803,115 780,625 1,359,419 51,363,146 Total Expenses (35,389,565) (2,931,214) (626,645) (1,383,721) (40,331,145)

Increase (Decrease) in Net Position 11,030,422$ (128,099)$ 153,980$ (24,302)$ 11,032,001$


Required Supplementary Information


ST. JOHNS COUNTY SCHOOL DISTRICTSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET TO ACTUALGENERAL FUND - LEGAL LEVEL OF BUDGETARY CONTROL


Variance withFinal Budget -

PositiveOriginal Final Actual (Negative)

RevenuesFederal Direct:

Reserve Officers Training Corps 200,000$ 200,000$ 212,987$ 12,987$ Federal Through State:Other Federal Through State - - 27,950 27,950 Total Federal Through State - - 27,950 27,950 State:

Florida Education Finance Program 90,135,025 87,370,832 87,370,832 - Workforce Development Program - 4,323,713 4,323,713 - Workforce Education Performance Incentive - 132,218 132,218 - CO&DS Withheld for Administrative Expense - 20,889 20,889 - Discretionary Lottery Funds 129,037 - - - Class Size Reduction - Operating Funds 38,848,989 38,357,884 38,373,022 15,138 School Recognition Funds 2,572,747 3,084,279 3,084,279 - Voluntary Prekindergarten Program - 770,043 770,043 -

Other State:State License Tax 67,000 67,000 68,076 1,076 Miscellaneous State Revenue 206,750 1,172,672 1,172,673 1

Total State 131,959,548 135,299,530 135,315,745 16,215 Local:

District School Taxes 121,065,742 121,065,742 121,537,883 472,141 Tax Redemptions 200,000 200,000 337,461 137,461 Rent - 740,342 740,342 - Investment Income 160,000 160,000 312,722 152,722 Net Increase in Fair Value of Investments - - 19,079 19,079 Gifts, Grants, and Bequests - 558,897 633,600 74,703 Other Student Fees 7,000 7,000 6,385 (615) Preschool Program Fees - 268,703 268,703 - Prekindergarten Early Intervention - - 105,503 105,503 School Age Child Care Fees - 5,298,595 5,298,595 - Other Schools Courses Classes - 603,307 603,307 - Bus Fees 139,600 139,600 39,198 (100,402) Field Trips 142,500 142,500 574,819 432,319 Sale of Junk 50,000 50,000 87,814 37,814 Federal Indirect Cost Rate 600,000 600,000 569,327 (30,673) Miscellaneous Local Revenues 821,057 1,618,942 2,952,119 1,333,177

Total Local 123,185,899 131,453,628 134,086,857 2,633,229 Total Revenues 255,345,447 266,953,158 269,643,539 2,690,381

(Continued)

Budgeted Amounts



BUDGET TO ACTUAL (CONTINUED)GENERAL FUND - LEGAL LEVEL OF BUDGETARY CONTROL




ExpendituresCurrent Education:

Instruction:Salaries 116,349,821$ 114,900,126$ 108,715,934$ 6,184,192$ Employee Benefits 40,801,488 40,620,646 37,809,430 2,811,216 Purchased Services 4,465,103 12,368,278 11,245,239 1,123,039 Energy Services - 2,196 2,196 - Materials and Supplies 17,425,543 10,686,859 5,294,783 5,392,076 Capital Outlay 369,836 1,693,450 1,488,720 204,730 Other 2,435,907 3,815,523 3,226,401 589,122

Total Instruction 181,847,698 184,087,078 167,782,703 16,304,375 Student Personnel Services:

Salaries 11,844,279 12,741,114 12,410,797 330,317 Employee Benefits 4,108,066 4,735,704 4,567,890 167,814 Purchased Services 667,335 662,524 610,335 52,189 Materials and Supplies 98,303 126,030 90,427 35,603 Capital Outlay 10,823 16,242 11,084 5,158 Other - 8,503 8,203 300

Total Student Personnel Services 16,728,806 18,290,117 17,698,736 591,381 Instructional Media Services:

Salaries 3,135,686 3,150,350 3,097,193 53,157 Employee Benefits 1,318,096 1,296,150 1,252,303 43,847 Purchased Services 20,095 47,244 38,311 8,933 Materials and Supplies 141,299 92,217 72,042 20,175 Capital Outlay 119,336 232,365 216,479 15,886 Other 1,000 2,926 2,026 900

Total Instructional Media Services 4,735,512 4,821,252 4,678,354 142,898 Instruction and Curriculum Development:

Salaries 3,538,017 3,345,505 3,274,214 71,291 Employee Benefits 1,089,967 1,088,305 1,019,236 69,069 Purchased Services 163,260 242,894 161,675 81,219 Materials and Supplies 49,211 65,641 57,272 8,369 Capital Outlay 7,360 15,254 11,658 3,596 Other 10,665 2,883 2,843 40

Total Instruction and Curriculum Development 4,858,480 4,760,482 4,526,898 233,584 Instructional Staff Training Services

Salaries 639,208 2,912,729 2,762,711 150,018 Employee Benefits 183,691 944,415 877,214 67,201 Purchased Services 148,332 542,026 417,739 124,287 Materials and Supplies 6,000 12,256 9,545 2,711 Other 7,324 43,230 35,138 8,092

Total Instructional Staff Training Services 984,555 4,454,656 4,102,347 352,309 Instruction Related Technology:

Salaries 3,456,922 3,221,828 3,180,763 41,065 Employee Benefits 1,081,082 1,090,385 1,083,970 6,415 Purchased Services 2,881,413 3,094,016 3,046,014 48,002 Energy Services 4,000 4,000 1,667 2,333 Capital Outlay 100,070 120,943 6,129 114,814

Total Instruction Related Technology 7,523,487 7,531,172 7,318,543 212,629

(Continued)

Budgeted Amounts







Expenditures (continued)Current Education (continued):

Board of Education:Salaries 221,974$ 227,526$ 223,435$ 4,091$ Employee Benefits 117,646 123,692 116,845 6,847 Purchased Services 620,770 991,007 963,573 27,434 Materials and Supplies 4,453 5,156 4,400 756 Other 34,625 21,306 20,681 625

Total Board of Education 999,468 1,368,687 1,328,934 39,753 General Administration:

Salaries 250,834 256,829 252,134 4,695 Employee Benefits 70,234 75,284 71,177 4,107 Purchased Services 9,000 37,289 33,097 4,192 Materials and Supplies 6,000 5,469 3,045 2,424 Other 13,500 13,960 12,916 1,044

Total General Administration 349,568 388,831 372,369 16,462 School Administration:

Salaries 12,989,403 12,241,277 11,995,485 245,792 Employee Benefits 4,130,097 4,170,469 3,976,946 193,523 Purchased Services 653,118 485,585 279,166 206,419 Materials and Supplies 413,656 334,385 150,981 183,404 Capital Outlay 18,528 103,259 53,266 49,993 Other 37,455 52,703 45,375 7,328

Total School Administration 18,242,257 17,387,678 16,501,219 886,459 Facilities Acquisition and Construction:

Salaries 1,028,890 1,004,143 990,475 13,668 Employee Benefits 319,596 353,463 340,094 13,369 Purchased Services 2,735,235 2,739,176 2,309,337 429,839 Energy Services 13,000 13,000 4,778 8,222 Materials and Supplies 56,844 63,977 5,048 58,929 Capital Outlay 469,377 1,006,857 386,375 620,482 Other 14,500 15,106 14,506 600

Total Facilities Acquisition and Construction 4,637,442 5,195,722 4,050,613 1,145,109 Fiscal Services:

Salaries 1,254,225 1,305,238 1,285,838 19,400 Employee Benefits 405,248 460,558 442,926 17,632 Purchased Services 174,600 191,411 182,076 9,335 Materials and Supplies 22,128 20,763 15,947 4,816 Capital Outlay 532 2,762 1,642 1,120 Other 63,200 49,025 49,024 1

Total Fiscal Services 1,919,933 2,029,757 1,977,453 52,304 Central Services:

Salaries 2,265,369 2,371,877 2,324,400 47,477 Employee Benefits 648,634 848,722 819,615 29,107 Purchased Services 358,660 336,355 263,609 72,746 Energy Services 5,500 5,500 2,089 3,411 Materials and Supplies 42,409 69,114 56,719 12,395 Capital Outlay 7,379 18,933 15,452 3,481 Other 5,900 10,327 9,100 1,227

Total Central Services 3,333,851 3,660,828 3,490,984 169,844

(Continued)

Budgeted Amounts







Current Education (concluded):Student Transportation Services:

Salaries 6,295,207$ 6,287,496$ 6,287,496$ -$ Employee Benefits 3,021,700 3,129,504 3,129,504 - Purchased Services 479,467 646,014 571,333 74,681 Energy Services 2,345,920 2,162,459 1,080,912 1,081,547 Materials and Supplies 660,747 696,741 637,207 59,534 Capital Outlay 2,500 8,255 8,255 - Other 200,900 209,853 209,853 -

Total Student Transportation Services 13,006,441 13,140,322 11,924,560 1,215,762 Operation of Plant:

Salaries 7,404,338 7,626,934 7,476,440 150,494 Employee Benefits 3,459,467 3,661,134 3,526,900 134,234 Purchased Services 3,886,812 4,036,220 3,827,537 208,683 Energy Services 6,281,397 6,198,890 5,234,279 964,611 Materials and Supplies 1,368,975 1,194,677 1,124,719 69,958 Capital Outlay 71,242 245,382 192,603 52,779 Other 4,826 417,124 415,132 1,992

Total Operation of Plant 22,477,057 23,380,361 21,797,610 1,582,751 Maintenance of Plant:

Salaries 4,329,650 4,296,420 4,236,655 59,765 Employee Benefits 1,552,629 1,581,220 1,541,871 39,349 Purchased Services 883,744 862,181 777,433 84,748 Energy Services 131,434 130,934 89,577 41,357 Materials and Supplies 680,667 619,507 503,294 116,213 Capital Outlay 852,403 1,254,915 1,049,089 205,826 Other - 2,380 1,630 750

Total Maintenance of Plant 8,430,527 8,747,557 8,199,549 548,008 Administrative Technology Services:

Salaries 295,943 308,468 229,686 78,782 Employee Benefits 96,181 107,271 88,031 19,240 Purchased Services 182,058 234,729 199,971 34,758 Materials and Supplies 5,000 8,226 5,927 2,299 Capital Outlay 55,763 62,174 57,723 4,451 Other 45,200 56,900 536 56,364

Total Administrative Technology Services 680,145 777,768 581,874 195,894 Community Services:

Salaries 692,678 3,281,262 2,687,244 594,018 Employee Benefits 717,014 1,594,622 990,553 604,069 Purchased Services 218,464 298,077 51,042 247,035 Materials and Supplies 1,302,949 1,401,425 277,732 1,123,693 Capital Outlay 156,320 127,911 43,310 84,601 Other 17,558 23,103 455 22,648

Total Community Services 3,104,983 6,726,400 4,050,336 2,676,064 Capital Outlay:

Facility Acquisition and Construction 1,210,024 1,195,865 713,377 482,488 Other Capital Outlay 515,542 686,111 569,216 116,895

Total Capital Outlay 1,725,566 1,881,976 1,282,593 599,383

Total Expenditures 295,585,776 308,630,644 281,665,675 26,964,969

(Continued)

Budgeted Amounts



BUDGET TO ACTUAL (CONCLUDED)GENERAL FUND - LEGAL LEVEL OF BUDGETARY CONTROL




Excess (Deficiency) of Revenues Over Expenditures (40,240,329)$ (41,677,486)$ (12,022,136)$ 29,655,350$

Other Financing Sources (Uses)Insurance Loss Recoveries - - 103,702 103,702 Transfers In 5,985,883 6,772,911 6,772,911 -

Total Other Financing Sources 5,985,883 6,772,911 6,876,613 103,702

Net Change in Fund Balance (34,254,446) (34,904,575) (5,145,523) 29,759,052

Fund Balance - Beginning 48,229,738 48,229,738 48,229,738 - Fund Balance - Ending 13,975,292$ 13,325,163$ 43,084,215$ 29,759,052$

Budgeted Amounts


Actuarial Accrued UAAL as aActuarial Liability (AAL) - (1) Unfunded AAL Percentage of

Actuarial Value of Assets Entry Age Normal Cost (UAAL) Funded Ratio Covered Payroll Covered PayrollValuation Date (a) (b) (b-a) (a/b) (c) ((b-a)/c)

January 1, 2009 -$ 112,079,956$ 112,079,956$ 0% 121,342,166$ 92.37%

January 1, 2012 - 93,305,724 93,305,724$ 0% 124,302,642 75.06%

January 1, 2014 - 53,625,376 53,625,376$ 0% 131,804,532 40.69%

January 1, 2016 - 26,026,761 26,026,761$ 0% 145,568,515 17.88%

Note: (1) The District's OPEB actuarial valuation used the entry age normal cost method to estimate the actuarial accrued liability.

The schedule of funding progress presents multi-year trend information about whether the actuarial value of plan assets is increasingor decreasing over time relative to the actuarial accrued liabilities for benefits. The Schedule of Funding Progress was as follows:

ST. JOHNS COUNTY SCHOOL DISTRICTREQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF FUNDING PROGRESS FOR OTHER POSTEMPLOYMENT BENEFITS


2015 2014 2013District's proportion of the FRS net pension liability (asset) .422344002% .406030045% .389856442%

District's proportionate share of the FRS net pension liability (asset) 54,551,392$ 24,773,804$ 67,111,642$

District's covered-employee payroll 151,156,449$ 142,416,195$ 132,401,222$

District's proportionate share of the FRS net pension liability (asset) as a percentage of its covered-employee payroll 36.09% 17.40% 50.69%

FRS Plan fiduciary net position as a percentage of the total pension liability 92.00% 96.09% 88.54%

Note: The amounts presented for each fiscal year were determined as of June 30.


SCHEDULE OF THE DISTRICT'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITYFLORIDA RETIREMENT SYSTEM (FRS) DEFINED BENEFIT PENSION PLAN


2016 2015 2014

Contractually required FRS contribution 9,965,075$ 10,297,105$ 8,893,781$

FRS contributions in relation to thecontractually required contribution 9,965,075 10,297,105 8,893,781

FRS contribution deficiency (excess) -$ -$ -$


FRS contributions as a percentage ofcovered-employee payroll 6.48% 6.81% 6.24%



SCHEDULE OF THE DISTRICT'S CONTRIBUTIONSFLORIDA RETIREMENT SYSTEM (FRS) DEFINED BENEFIT PENSION PLAN


2015 2014 2013District's proportion of the HIS net pension liability (asset) 0.57737055% 0.55122137% 0.52312068%

District's proportionate share of the HIS net pension liability (asset) 58,883,581$ 51,540,543$ 45,544,533$


District's proportionate share of the HIS net pension liability (asset) as a percentage of its covered-employee payroll 33.60% 31.49% 29.95%

HIS Plan fiduciary net position as a percentage of the total pension liability .50% .99% 1.78%



SCHEDULE OF THE DISTRICT'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITYHEALTH INSURANCE SUBSIDY PENSION PLAN


2016 2015 2014

Contractually required HIS contribution 2,994,840$ 2,207,102$ 1,888,299$

HIS contributions in relation to thecontractually required contribution 2,994,840 2,207,102 1,888,299

HIS contribution deficiency (excess) -$ -$ -$


HIS contributions as a percentage ofcovered-employee payroll 1.66% 1.26% 1.15%



SCHEDULE OF THE DISTRICT'S CONTRIBUTIONSHEALTH INSURANCE SUBSIDY PENSION PLAN


ST. JOHNS COUNTY SCHOOL DISTRICT Notes to Required Supplementary Information

June 30, 2016

1. BUDGETARY BASIS OF ACCOUNTING

The Board follows procedures established by State statutes and SBE rules in establishing budget balances for governmental funds, as described below:

Budgets are prepared, public hearings are held, and original budgets are adopted annually for all governmental fund types in accordance with procedures and time intervals prescribed by law and SBE rules.

Appropriations are controlled at the object level (e.g., salaries, purchased services, and capital outlay) within each activity (e.g., instruction, student personnel services, and school administration) and may be amended by resolution at any Board meeting prior to the due date for the annual financial report.

Budgets are prepared using the same modified accrual basis as is used to account for governmental funds.

Budgetary information is integrated into the accounting system and, to facilitate budget control, budget balances are encumbered when purchase orders are issued. Appropriations lapse at fiscal year-end and encumbrances outstanding are honored from the subsequent year's appropriations.

2. SCHEDULE OF FUNDING PROGRESS – OTHER POSTEMPLOYMENT BENEFITS

The January 1, 2012, unfunded actuarial accrued liability of $93,305,724 was significantly higher than the January 1, 2014, liability of $53,625,376 as a result of changes in benefit and other key assumptions as discussed below:

The average cost of coverage provided to employees, retirees, and their dependents decreased from $902 per subscriber per month (as expected for the 2011-12 plan year) to $858 per subscriber per month for the 2013-14 plan year. This change had a significant decreasing effect on the cost and liability.

Subsidized retiree contributions are scheduled to increase at a rate faster than previously assumed. As of the January 1, 2014, valuation date, the retiree contribution rate for eligible retirees under the age of 65 increased from $300 per month for single coverage to $450 per month as of July 1, 2014. This had a substantial decreasing effect on the costs and liabilities.

The assumption that retirees becoming eligible for Medicare benefits will discontinue coverage under the District’s core plan and migrate to the more affordable group Medicare health insurance option increased from 60 percent to 75 percent. This had a substantial decreasing effect on the costs and liabilities.

The January 1, 2014, unfunded actuarial accrued liability of $53,625,376 was significantly higher than the January 1, 2016, liability of $26,026,761, as a result of changes in benefit and other key assumptions as discussed below:

The number of covered active employees increased from 3,048 as of the prior valuation date to 3,383 as of January 1, 2016. At the same time, the number of retirees with medical coverage as of the valuation date decreased from 385 in the previous valuation to 293 as of January 1, 2016. These population changes had a decreasing effect on the costs and liabilities.

The average cost of coverage provided to employees, retirees and their dependents decreased from $858 per subscriber per month (as expected for the 2013-14 plan year) to $814 per subscriber per month for the 2015-16 plan year. This is much lower than the $1,001 projected for the 2015-16 plan year at the time of the last valuation. This change had a significant decreasing effect on the cost and liability.

The stated premium rates charged to Medicare eligible retirees increased approximately 16 percent from the 2014-15 plan year to 2015-16 plan year and premium rates charged to pre-Medicare retirees not qualified for the District subsidy increased approximately 12 percent from the 2014-15 plan year to 2015-16 plan year. This change had an effect of dramatically narrowing the gap between the costs and premiums collected from retirees, in particular those eligible for Medicare, and as such had a substantial decreasing effect on the costs and liabilities.


Other Supplementary Information-

Combining and Individual Fund Statements and Schedules


Other Supplementary Schedules

Combining Statements

Included in the other supplementary schedules are combining statements for nonmajor governmental funds. These statements provide information on each individual nonmajor governmental fund that aggregates to the total presented as nonmajor governmental funds on the basic financial statements.


Debt ServiceOther Federal State Board ARRA

Food Federal Economic of Education DebtService Programs Stimulus COBI Bonds ServiceFund Fund Fund Fund Fund

AssetsCash and Cash Equivalents 1,501,470$ -$ -$ -$ -$ Investments - - - 111,334 4,716,724 Accounts Receivable 1,697 189 - - - Due From Other Agencies - 467,214 - - - Inventories 214,125 - - - - Prepaid Items - 80,160 - - -

Total Assets 1,717,292$ 547,563$ -$ 111,334$ 4,716,724$

Liabilities and Fund Balances

LiabilitiesSalaries and Benefits Payable 26,873$ 66,329$ -$ -$ -$ Payroll Deductions and Withholdings Payable 10,016 18,971 - - - Accounts Payable 137,755 29,941 - - - Construction Contracts Payable - 31,909 - - - Due to Other Agencies - 10,524 - - - Due to Budgetary Funds 389,889 - - - Deposits Payable 311,866 - - - -

Total Liabilities 486,510 547,563 - - -

Deferred Revenues - - - - -

Fund Balances:Nonspendable 214,125 80,160 - - - Restricted 1,016,657 - - 111,334 4,716,724 Unassigned - (80,160) - - -

Total Fund Balances 1,230,782 - - 111,334 4,716,724 Total Liabilities and Fund Balances 1,717,292$ 547,563$ -$ 111,334$ 4,716,724$

ST. JOHNS COUNTY SCHOOL DISTRICTCOMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDSJUNE 30, 2016

Special Revenue


Capital ProjectsPublic Capital Outlay

Education and DebtCapital Outlay Service

Fund Fund Total

39,101$ 812,670$ 2,353,241$ - - 4,828,058 - - 1,886

1,060,656 9,262 1,537,132 - - 214,125 - - 80,160

1,099,757$ 821,932$ 9,014,602$

-$ -$ 93,202$ - - 28,987

33,154 - 200,850 - - 31,909 - - 10,524

151,904 - 541,793 - - 311,866

185,058 - 1,219,131

- 9,262 9,262

- - 294,285 914,699 812,670 7,572,084

- - (80,160) 914,699 812,670 7,786,209

1,099,757$ 821,932$ 9,014,602$


Debt ServiceOther Federal State Board ARRA

Food Federal Economic of Education DebtService Programs Stimulus COBI Bonds ServiceFund Fund Fund Fund Fund

RevenuesIntergovernmental:

Federal Direct -$ 1,065,058$ -$ -$ 734,677$ Federal Through State and Local 4,911,304 10,683,199 357,280 - - State 63,658 - - 944,745 -

Local:Charges for Services - Food Service 6,611,348 - - - - Other 198,256 - - - 10,425

Total Revenues 11,784,566 11,748,257 357,280 944,745 745,102

Expenditures Current Education:

Instruction - 5,573,369 357,280 - - Student Personnel Services - 2,448,074 - - - Instruction and Curriculum Development - 1,510,073 - - - Instructional Staff Training Services - 1,491,283 - - - General Administration - 569,327 - - - Facilities Acquisition and Construction - - - - - Food Services 10,639,904 - - - - Student Transportation Services - 51,129 - - - Operation of Plant - 333 - - - Community Services - 63,505 - - -

Capital Outlay:Facilities Acquisition and Construction - - - - - Other Capital Outlay 205,677 41,164 - - -

Debt Service:Retirement of Principal - - - 706,000 - Interest and Fiscal Charges - - - 262,408 795,375

Total Expenditures 10,845,581 11,748,257 357,280 968,408 795,375

Excess (Deficiency) of Revenues Over Expenditures 938,985 - - (23,663) (50,273)

Other Financing Sources (Uses)Transfers In - - - - 1,002,062 Transfers Out (1,000,000)

Total Other Financing Sources (Uses) (1,000,000) - - - 1,002,062

Net Change in Fund Balances (61,015) - - (23,663) 951,789

Fund Balances - Beginning 1,291,797 - - 134,997 3,764,935

Fund Balances - Ending 1,230,782$ -$ -$ 111,334$ 4,716,724$

ST. JOHNS COUNTY SCHOOL DISTRICTCOMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2016

Special Revenue


Capital ProjectsPublic Capital Outlay

Education and DebtCapital Outlay Service

Fund Fund Total

-$ -$ 1,799,735$ - - 15,951,783

503,107 452,536 1,964,046

- - 6,611,348 29,515 1,192 239,388

532,622 453,728 26,566,300

- - 5,930,649 - - 2,448,074 - - 1,510,073 - - 1,491,283 - - 569,327

2,519,702 - 2,519,702 - - 10,639,904 - - 51,129 - - 333 - - 63,505

222,208 - 222,208 5,800 - 252,641

- - 706,000 - 1,004 1,058,787

2,747,710 1,004 27,463,615

(2,215,088) 452,724 (897,315)

- - 1,002,062 (1,000,000)

- - 2,062

(2,215,088) 452,724 (895,253)

3,129,787 359,946 8,681,462

914,699$ 812,670$ 7,786,209$


Other Supplementary Schedules

Individual Budgetary Comparison Schedules

Also included in the other supplementary schedules are budgetary schedules for all governmental funds. For nonmajor special revenue funds, all debt service funds, and all capital project funds, budgetary comparison statements were not presented as part of the basic financial statements. Budgetary comparison schedules are presented as part of the other supplementary schedule for each of these funds to demonstrate the District’s compliance with its budget in each fund.



BUDGET AND ACTUALMAJOR DEBT SERVICE FUND


Variance withFinal Budget

Original Final PositiveBudget Budget Actual (Negative)

RevenuesLocal Sources

Local Sales Tax -$ 3,417,810$ 3,417,810$ -$ Interest on Investments - 56 56 -

Total Local Sources - 3,417,866 3,417,866 -

Total Revenues - 3,417,866 3,417,866 -

ExpendituresDebt Service:

Interest and Fiscal Charges 17,930,408 18,380,031 18,380,031 - Total Expenditures 17,930,408 18,380,031 18,380,031 -

Excess (Deficiency) of Revenues Over Expenditures (17,930,408) (14,962,165) (14,962,165) -

Other Financing Sources (Uses)Issuance of Refunding Debt - 469,690 469,690 - Transfers in 17,914,372 17,894,242 17,894,242 -

Total Other Financing Sources 17,914,372 18,363,932 18,363,932 -

Net Change in Fund Balance (16,036) 3,401,767 3,401,767 -

Fund Balance - Beginning 16,084 16,084 16,084 -

Fund Balance - Ending 48$ 3,417,851$ 3,417,851$ -$

Other Debt Service FundBudgeted Amounts



BUDGET AND ACTUALMAJOR CAPITAL PROJECTS FUNDS




RevenuesLocal:

Ad Valorem Property Taxes 31,703,669$ 31,703,669$ 31,911,983$ 208,314$ Interest on Investments 150,000 150,000 106,381 (43,619) Other Local Sources - - 129,072 129,072

Total Revenues 31,853,669 31,853,669 32,147,436 293,767


Facilities Acquisition and Construction 25,804,437 26,927,383 8,813,245 (18,114,138) Capital Outlay:

Facilities Acquisition and Construction: 4,921,213 5,138,362 674,401 (4,463,961) Other Capital Outlay 8,227,055 6,888,845 3,242,934 (3,645,911)

Total Expenditures 38,952,705 38,954,590 12,730,580 (26,224,010)

Excess (Deficiency) of Revenues Over Expenditures (7,099,036) (7,100,921) 19,416,856 26,517,777

Other Financing Sources (Uses)Transfers out (16,454,361) (16,452,476) (16,452,476) -

Total Other Financing Sources (16,454,361) (16,452,476) (16,452,476) -

Net Change in Fund Balance (23,553,397) (23,553,397) 2,964,380 26,517,777

Fund Balance - Beginning 23,772,020 23,772,020 23,772,020 -

Fund Balance - Ending 218,623$ 218,623$ 26,736,400$ 26,517,777$

Local Capital Improvement FundBudgeted Amounts



BUDGET AND ACTUALMAJOR CAPITAL PROJECTS FUNDS




RevenuesState:

Other State Sources -$ 38,913$ 127,725$ 88,812$ Total State Sources - 38,913 127,725 88,812 Local:

Local Sales Tax - 3,082,190 5,373,748 2,291,558 Impact Fees 10,000,000 10,000,000 14,768,255 4,768,255 Interest on Investments - 526 302,687 302,161 Other Local Sources - 22,972 8,910,571 8,887,599

Total Local Sources 10,000,000 13,105,688 29,355,261 16,249,573

Total Revenues 10,000,000 13,144,601 29,482,986 16,338,385


Facilities Acquisition and Construction 5,412,974 6,052,917 1,536,085 (4,516,832) Capital Outlay:

Facilities Acquisition and Construction 48,651,413 100,144,263 8,931,658 (91,212,605) Other Capital Outlay 25,390 1,089,283 99,114 (990,169)

Total Expenditures 54,089,777 107,286,463 10,566,857 (96,719,606)

Excess (Deficiency) of Revenues Over Expenditures (44,089,777) (94,141,862) 18,916,129 113,057,991

Other Financing Sources (Uses)Issuance of Sales Tax Bonds - 42,755,000 42,755,000 - Premiums on Issuance of Long-Term Debt - 7,248,030 7,248,030 - Transfers out (8,225,046) (8,216,739) (8,216,739) -

Total Other Financing Sources (8,225,046) 41,786,291 41,786,291 -

Net Change in Fund Balance (52,314,823) (52,355,571) 60,702,420 113,057,991

Fund Balance - Beginning 52,314,823 52,314,823 51,909,376 (405,447)

Fund Balance - Ending -$ (40,748)$ 112,611,796$ 112,652,544$

Other Capital Projects FundBudgeted Amounts



BUDGET AND ACTUALNONMAJOR SPECIAL REVENUE FUNDS




Revenues

Federal Through StateNational School Lunch Program 4,210,318$ 4,210,318$ 4,268,454$ 58,136$ USDA Donated Foods 494,902 494,902 537,766 42,864 Summer Food Service Program 102,000 102,000 105,084 3,084

Total Federal Through State 4,807,220 4,807,220 4,911,304 104,084

StateSchool Breakfast Supplement 37,000 37,000 26,316 (10,684) School Lunch Supplement 25,000 25,000 37,342 12,342

Total State 62,000 62,000 63,658 1,658

LocalInterest on Investment 3,000 3,000 8,183 5,183 Food Sales 6,963,563 6,963,563 6,611,348 (352,215) Other Local Sources 250,000 250,000 190,073 (59,927)

Total Local 7,216,563 7,216,563 6,809,604 (406,959)

Total Revenues 12,085,783 12,085,783 11,784,566 (301,217)

ExpendituresCurrent:

Food Services:Salaries 3,832,832 3,932,832 3,918,871 (13,961) Employee Benefits 1,911,707 1,919,207 1,919,075 (132) Purchased Services 190,200 218,174 177,905 (40,269) Energy Services 150,000 151,000 55,453 (95,547) Materials and Supplies 5,206,601 4,302,087 4,155,580 (146,507) Capital Outlay 22,000 55,335 52,061 (3,274) Other 333,000 368,904 360,959 (7,945)

Capital Outlay:Other Capital Outlay 188,500 287,300 205,677 (81,623)

Total Expenditures 11,834,840 11,234,839 10,845,581 (389,258)

Excess of Revenues Over Expenditures 250,943 850,944 938,985 88,041

Other Financing Sources Transfers Out (250,000) (1,000,000) (1,000,000) -

Net Change in Fund Balance 943 (149,056) (61,015) 88,041

Fund Balances - Beginning 1,291,797 1,291,797 1,291,797 -

Fund Balances - Ending 1,292,740$ 1,142,741$ 1,230,782$ 88,041$

Food Service FundBudgeted Amounts







Revenues

Federal Direct SourcesOther Federal Direct 1,048,162$ 1,065,058$ 1,065,058$ -$

Total Federal Direct Sources 1,048,162 1,065,058 1,065,058 -

Federal Through State and Local SourcesIndividuals with Disabilities Education Act 6,284,921 5,917,005 5,917,005 - Title 1 and School Improvement Grants 3,798,931 3,380,765 3,380,765 - Other Federal Through State and Local Sources 1,070,465 1,385,429 1,385,429 -

Total Federal Through State and Local Sources 11,154,317 10,683,199 10,683,199 -

Total Revenues 12,202,479 11,748,257 11,748,257 -


Instruction:Salaries 2,812,773 2,564,276 2,564,276 - Employee Benefits 1,063,079 1,063,717 1,063,717 - Purchased Services 859,751 1,359,017 1,359,017 - Materials and Supplies 388,311 175,995 175,995 - Capital Outlay 112,627 201,290 201,290 - Other 99,343 209,074 209,074 -

Total Instruction 5,335,884 5,573,369 5,573,369 - Student Personnel Services:

Salaries 1,662,135 1,722,249 1,722,249 - Employee Benefits 644,948 572,594 572,594 - Purchased Services 181,576 102,375 102,375 - Materials and Supplies 68,806 50,429 50,429 - Capital Outlay 5,950 427 427 - Other 1,136 - - -

Total Student Personnel Services 2,564,551 2,448,074 2,448,074 - Instruction and Curriculum Development:

Salaries 969,159 1,028,759 1,028,759 - Employee Benefits 361,025 293,292 293,292 - Purchased Services 697,732 168,572 168,572 - Materials and Supplies 14,185 8,554 8,554 - Capital Outlay 12,650 7,491 7,491 - Other 7,704 3,405 3,405 -

Total Instruction and Curriculum Development 2,062,455 1,510,073 1,510,073 -

(Continued)

Other Federal Programs FundBudgeted Amounts



BUDGET AND ACTUAL (CONCLUDED)NONMAJOR SPECIAL REVENUE FUNDS



PositiveExpenditures (concluded) Original Final Actual (Negative)

Instructional Staff Training Services:Salaries 806,373$ 781,329$ 781,329$ -$ Employee Benefits 289,081 212,351 212,351 - Purchased Services 257,794 454,507 454,507 - Materials and Supplies 5,754 5,577 5,577 - Capital Outlay 1,350 1,327 1,327 - Other 48,202 36,192 36,192 -

Total Instructional Staff Training Services 1,408,554 1,491,283 1,491,283 - General Administration:

Other 615,020 569,327 569,327 - Total General Administration 615,020 569,327 569,327 - Student Transportation Services:

Purchased Services 93,806 50,343 50,343 - Capital Outlay - 786 786 -

Total Student Transportation Services 93,806 51,129 51,129 - Operation of Plant:

Purchased Services 72 61 61 - Materials and Supplies 200 272 272 -

Total Operation of Plant 272 333 333 - Community Services:

Salaries 33,619 44,737 44,737 - Employee Benefits 13,892 14,476 14,476 - Purchased Services 50 1,815 1,815 - Materials and Supplies 122 866 866 - Capital Outlay 50 1,611 1,611 - Other - - - -

Total Community Services 47,733 63,505 63,505 - Capital Outlay:

Other Capital Outlay 74,204 41,164 41,164 -

Total Expenditures 12,202,479 11,748,257 11,748,257 -

(Deficiency) of Revenues (Under) Expenditures - - - -

Net Change in Fund Balance - - - -

Fund Balances - Beginning - - - -

Fund Balances - Ending -$ -$ -$ -$

Other Federal Programs FundBudgeted Amounts







Revenues

Federal Through State and Local SourcesARRA Race to the Top 361,699$ 357,280$ 357,280$ -$

Total Federal Through State and Local Sources 361,699 357,280 357,280 -

Total Revenues 361,699 357,280 357,280 -


Instruction:Capital Outlay 357,312 357,280 357,280 -

Total Instruction 357,312 357,280 357,280 - Instruction and Curriculum Development:

Salaries 3,373 - - - Employee Benefits 1,014 - - -

Total Instruction and Curriculum Development 4,387 - - -

Total Expenditures 361,699 357,280 357,280 -

(Deficiency) of Revenues (Under) Expenditures - - - -

Net Change in Fund Balance - - - -

Fund Balances - Beginning - - - -

Fund Balances - Ending -$ -$ -$ -$

Federal Economic Stimulus Programs FundBudgeted Amounts



BUDGET AND ACTUALNONMAJOR DEBT SERVICE FUNDS




RevenuesState:

Debt Service for State Board of Education/COBI Bonds -$ 944,565$ 944,565$ -$ State Board of Education/COBI Bond Interest - 180 180 -

Total Revenues - 944,745 944,745 -


Retirement of Principal - 706,000 706,000 - Interest and Fiscal Charges - 262,408 262,408 -

Total Expenditures - 968,408 968,408 -

(Deficiency) of Revenues Over Expenditures - (23,663) (23,663) -

Net Change in Fund Balance - (23,663) (23,663) -

Fund Balance - Beginning - 134,997 134,997 -

Fund Balance - Ending -$ 111,334$ 111,334$ -$

State Board of Education COBI Bonds FundBudgeted Amounts



BUDGET AND ACTUALNONMAJOR DEBT SERVICE FUNDS




Federal Direct SourcesOther Federal Direct 733,491$ 734,677$ 734,677$ -$

Total Federal Direct Sources 733,491 734,677 734,677 -

Local SourcesInterest on Investments - 10,425 10,425 -

Total Local Sources - 10,425 10,425 -

Total Revenues 733,491 745,102 745,102 -


Interest and Fiscal Charges 794,900 795,375 795,375 - Total Expenditures 794,900 795,375 795,375 -

Excess (Deficiency) of Revenues Over Expenditures (61,409) (50,273) (50,273) -

Other Financing Sources (Uses)Transfers in 1,002,585 1,002,062 1,002,062 -

Total Other Financing Sources 1,002,585 1,002,062 1,002,062 -

Net Change in Fund Balance 941,176 951,789 951,789 -


Fund Balance - Ending 4,706,111$ 4,716,724$ 4,716,724$ -$

ARRA Debt Service FundBudgeted Amounts



BUDGET AND ACTUALNONMAJOR CAPITAL PROJECTS FUNDS




RevenuesState:

Public Education Capital Outlay 503,106$ 503,107$ 503,107$ -$ Total State Sources 503,106 503,107 503,107 - Local:

Other Local Revenue - - 29,515 29,515 Total Local Sources - - 29,515 29,515

Total Revenues 503,106 503,107 532,622 29,515


Facilities Acquisition and Construction 3,430,949 3,404,886 2,519,702 885,184 Capital Outlay:

Facilities Acquisition and Construction: 201,944 222,208 222,208 Other Capital Outlay - 5,800 5,800

Total Expenditures 3,632,893 3,632,894 2,747,710 885,184

Excess of Revenues Over Expenditures (3,129,787) (3,129,787) (2,215,088) 914,699

Net Change in Fund Balance (3,129,787) (3,129,787) (2,215,088) 914,699


Fund Balance - Ending -$ -$ 914,699$ 914,699$

Budgeted AmountsPublic Education Capital Outlay Fund



BUDGET AND ACTUALNONMAJOR CAPITAL PROJECTS FUNDS




RevenuesState:

CO&DS Distributed 416,785$ 448,419$ 448,419$ -$ Interest Undistributed CO/DS - 4,117 4,117 -

Total State Sources 416,785 452,536 452,536 - Local:

Interest on Investments - - 1,192 1,192 Total Local Sources - - 1,192 1,192

Total Revenues 416,785 452,536 453,728 1,192


Interest and Fiscal Charges - 1,004 1,004 - Capital Outlay:

Facilities Acquisition and Construction: 776,731 752,799 - (752,799) Total Expenditures 776,731 753,803 1,004 (752,799)

Excess of Revenues Over Expenditures (359,946) (301,267) 452,724 753,991

Net Change in Fund Balance (359,946) (301,267) 452,724 753,991

Fund Balance - Beginning 359,946 359,946 359,946 -

Fund Balance - Ending -$ 58,679$ 812,670$ 753,991$

Capital Outlay and Debt Service FundBudgeted Amounts


Internal Service Funds

Internal Service Funds are used to account for the District’s individual self-insurance programs, including health and hospitalization, dental, vision and workers’ compensation insurance coverage. Health and Hospitalization Insurance Fund - To account for District’s self-insurance program, including premiums received from employees, and payments made to the third-party administrator. Dental Insurance Fund - To account for District’s self-insurance program, including premiums received from employees, and payments made to the third-party administrator. Vision Insurance Fund - To account for District’s self-insurance program, including premiums received from employees, and payments made to the third-party administrator. Workers’ Compensation Fund - To account for District’s self-insurance program, including premiums received from employees, and payments made to the third-party administrator.


ST. JOHNS COUNTY SCHOOL DISTRICTINTERNAL SERVICE FUNDS

COMBINING STATEMENT OF NET POSITIONJUNE 30, 2016

Health andHospitalization Dental Vision Workers'

Insurance Insurance Insurance Compensation TotalAssets Current Assets:

Cash and Cash Equivalents 11,920,243$ 1,792,483$ 1,193,466$ 5,190,464$ 20,096,656$ Accounts Receivable 13,166 114 30 - 13,310

Total Current Assets 11,933,409 1,792,597 1,193,496 5,190,464 20,109,966

Noncurrent Assets: Capital Assets:

Capital Assets Being Depreciated, Net 239,445 - - - 239,445 Total Noncurrent Assets 239,445 - - - 239,445

Total Assets 12,172,854 1,792,597 1,193,496 5,190,464 20,349,411

Liabilities Current Liabilities:

Accrued Salaries and Benefits 380 - - 875 1,255 Payroll Deductions and Withholdings Payable 157 - - 145 302 Accounts Payable 2,125,714 - 28,601 284 2,154,599 Estimated Unpaid Claims - Self-Insurance Program 2,091,300 254,277 53,555 571,035 2,970,167

Total Liabilities 4,217,551 254,277 82,156 572,339 5,126,323

Total Liabilities 4,217,551 254,277 82,156 572,339 5,126,323

Net PositionNet Investment in Capital Assets 239,445 - - - 239,445 Unrestricted 7,715,858 1,538,320 1,111,340 4,618,125 14,983,643

Total Net Position 7,955,303$ 1,538,320$ 1,111,340$ 4,618,125$ 15,223,088$



Insurance Insurance Insurance Compensation Total

Operating RevenuesPremium Revenue 45,626,790$ 2,797,138$ 777,048$ 1,347,490$ 50,548,466$ Other Operating Revenues 768,905 - - - 768,905

Total Operating Revenues 46,395,695 2,797,138 777,048 1,347,490 51,317,371

Operating ExpensesInsurance Claims 33,100,855 2,931,214 626,645 1,243,849 37,902,563 Fees and Other 14,826 - - - 14,826 Salaries 87,689 - - 106,931 194,620 Employee Benefits 30,657 - - 32,941 63,598 Purchased Services 2,118,352 - - - 2,118,352 Depreciation 37,186 - - - 37,186

Total Operating Expenses 35,389,565 2,931,214 626,645 1,383,721 40,331,145

Operating Income (Loss) 11,006,130 (134,076) 150,403 (36,231) 10,986,226

Nonoperating RevenueInvestment Income 24,292 5,977 3,577 11,929 45,775

Total Nonoperating Revenues 24,292 5,977 3,577 11,929 45,775

Change in Net Position 11,030,422 (128,099) 153,980 (24,302) 11,032,001

Net Position - Beginning (3,075,119) 1,666,419 957,360 4,642,427 4,191,087

Net Position - Ending 7,955,303$ 1,538,320$ 1,111,340$ 4,618,125$ 15,223,088$


COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITIONFOR THE FISCAL YEAR ENDED JUNE 30, 2016



Insurance Insurance Insurance Compensation TotalCash Flows from Operating Activities

Cash Received from Customers and Users 46,395,695$ 2,797,138$ 777,048$ 1,347,490$ 51,317,371$ Cash Payments to Suppliers for Goods and Services (11,431,244) (226,986) (39,906) (1,208,281) (12,906,417) Cash Payments to Employees for Services (118,346) - - (139,872) (258,218) Cash Payments for Interfund Services Used (25,088,310) (2,710,353) (561,101) (167,618) (28,527,382)

Net Cash Used by Operating Activities 9,757,795 (140,201) 176,041 (168,281) 9,625,354

Cash Flows from Investing ActivitiesInvestment Income 24,292 5,977 3,577 11,929 45,775

Net Cash Provided by Investing Activities 24,292 5,977 3,577 11,929 45,775

Net Decrease in Cash 9,782,087 (134,224) 179,618 (156,352) 9,671,129

Cash, Beginning of Year 2,138,156 1,926,706 1,013,849 5,346,816 10,425,527

Cash, End of Year 11,920,243$ 1,792,482$ 1,193,467$ 5,190,464$ 20,096,656$

Reconciliation of Operating Loss to Net Cash Used byOperating Activities

Operating Income (Loss) 11,006,130$ (134,076)$ 150,403$ (36,231)$ 10,986,226$ Adjustments to Reconcile Operating Income to

Net Cash Used by Operating Activities: Depreciation Expense 37,186 - - - 37,186

Changes in Assets and Liabilities:Increase in Accounts Receivable (4,512) - - (9,622) (14,134) Decrease in Due from Reinsurer 158,426 972 269 - 159,667 Increase in Salaries and Benefits Payable 380 - - 875 1,255 Increase in Payroll Tax Liabilities 157 - - 145 302 Increase (Decrease) in Accounts Payable (995,884) (12) 15,320 - (980,576) Increase (Decrease) in Estimated Insurance Claims Payable (444,088) (7,085) 10,049 (123,448) (564,572) Total Adjustments (1,248,335) (6,125) 25,638 (132,050) (1,360,872)

Net Cash Used by Operating Activities 9,757,795$ (140,201)$ 176,041$ (168,281)$ 9,625,354$


COMBINING STATEMENT OF CASH FLOWSFOR THE FISCAL YEAR ENDED JUNE 30, 2016


Fiduciary Funds - Agency Funds

Agency Funds are Fiduciary Funds and are used to account for resources held by the District in a trustee capacity or as an agent for individuals or private organizations. These resources include student and club activities funds that are held in trust for student, athletic, class and club activities.


ST. JOHNS COUNTY SCHOOL DISTRICTSTATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDSFOR THE FISCAL YEAR ENDED JUNE 30, 2016

Internal Accounts - Student Activity Funds

July 1, 2015 Additions Deletions June 30, 2016

AssetsCash 3,657,858$ 13,822,377$ 13,424,941$ 4,055,294$ Due from Other Funds - 1,295 - 1,295

Total Assets 3,657,858$ 13,823,672$ 13,424,941$ 4,056,589$

LiabilitiesInternal Accounts Payable 3,516,818$ 463,873$ -$ 3,980,691$ Due to Other Funds 141,040 - 65,142 75,898

Total Liabilities 3,657,858$ 463,873$ 65,142$ 4,056,589$


STATISTICAL SECTION


Financial Trends Information Revenue Capacity Information Debt Capacity Information Demographic and Economic Information Operating Information


St. Johns County School DistrictNet Position by Component Government-Wide

Last Ten Fiscal Years(Accrual Basis of Accounting)

(Unaudited)

Table 1

June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013

Primary Government:

Governmental Activities:

Net Investment in Capital Assets 418,591,280$ 395,238,425$ 400,396,915$ 385,966,274$

Restricted 102,448,777 84,324,801 63,258,637 63,672,508

Unrestricted (118,656,185) (127,620,395) (19,927,295) (8,521,151)

Total Net Position 402,383,872$ 351,942,831$ 443,728,257$ 441,117,631$

Source: District Records - Audited Statement of Net Assets/Statement of Net Position

Fiscal Year Ending


Table 1

June 30, 2012 June 30, 2011 June 30, 2010 June 30, 2009 June 30, 2008 June 30, 2007

386,087,241$ 381,731,717$ 367,627,073$ 356,650,107$ 344,070,304$ 304,856,960$

60,943,371 71,477,555 86,518,843 92,284,614 89,793,876 75,769,666

(753,280) 15,237,326 16,671,195 8,711,520 (2,603,568) 3,660,016

446,277,332$ 468,446,598$ 470,817,111$ 457,646,241$ 431,260,612$ 384,286,642$

Fiscal Year Ending


St. Johns County School DistrictChanges in Net Position - Government-Wide


(Unaudited)

Table 2


ExpensesGovernmental Activities:

Instruction 175,748,352$ 173,507,627$ 169,143,833$ 157,997,830$ Pupil Personnel Services 20,408,021 20,093,904 18,267,087 16,255,387 Instructional Media Services 4,737,300 4,814,789 4,873,199 4,624,282 Instruction and Curriculum Development Services 6,113,077 6,271,030 5,914,184 6,650,112 Instructional Staff Training Services 5,656,429 5,806,845 5,415,067 4,589,316 Instruction Related Technology 7,376,343 6,515,405 5,809,924 5,348,639 School Board 1,333,544 1,131,053 984,863 811,347 General Administration 946,079 967,496 984,561 857,608 School Administration 16,717,692 16,444,564 15,758,884 14,196,372 Facilities Services - Non-Capitalized 16,937,677 17,234,877 11,944,402 11,401,141 Fiscal Services 2,000,883 1,833,604 1,951,820 1,885,777 Food Services 10,719,025 10,786,652 11,294,658 10,942,673 Central Services 14,939,898 13,673,785 12,079,000 11,439,124 Student Transportation Services 13,187,377 13,111,533 13,480,462 12,789,656 Operation of Plant 21,947,067 21,548,382 21,103,349 20,031,090 Maintenance of Plant 8,278,732 8,509,014 8,383,597 8,088,888 Administrative Technology Services 586,180 689,818 669,036 915,741 Community Services 4,163,622 3,787,343 3,466,553 3,429,051 Unallocated Interest on Long-Term Debt 4,579,224 5,674,732 6,481,995 5,130,125 Depreciation Expense (1) - - - -

Total Governmental Activities Expenses 336,376,522$ 332,402,453$ 318,006,474$ 297,384,159$

Program RevenuesGovernmental Activities:

Charges for Services:Instruction 1,007,858$ 828,625$ 899,448$ 972,222$ Food Services 6,611,349 6,829,933 7,601,358 7,313,047 Central Services 11,365,620 10,044,757 8,669,662 8,153,733 Student Transportation Services 614,016 571,486 637,884 536,743 Community Services 5,298,595 4,840,604 4,051,792 3,655,614

Operating Grants and Contributions 13,836,488 13,178,882 12,282,754 11,740,415 Capital Grants and Contributions 16,739,207 5,987,597 6,088,899 1,359,299

Total Government Program Revenues 55,473,133 42,281,884 40,231,797 33,731,073

Total Government Activities Net Expenses (280,903,389)$ (290,120,569)$ (277,774,677)$ (263,653,086)$

General Revenues:Governmental Activities:

Property Taxes Levied for Operational Purposes 121,875,344$ 113,363,873$ 110,543,223$ 109,605,169$ Property Taxes Levied for Debt Services - - 590 161 Property Taxes Levied for Capital Projects 31,911,983 29,106,294 27,436,618 26,586,165 Local Sales Tax 8,791,558 - - - Grants and Contributions Not Restricted to Specific Programs 138,868,615 131,468,770 120,979,009 105,766,468 Unrestricted Investment Earnings 806,500 344,555 355,206 358,579 Impact Fees 14,768,255 10,874,315 14,353,236 11,252,793 Proportionate Share Concurrency 8,672,782 5,798,873 2,219,581 - Miscellaneous 5,649,393 4,812,559 4,497,840 4,924,050

Total Governmental Activities General Revenues 331,344,430 295,769,239 280,385,303 258,493,385

Total Governmental Activities Changes in Net Position 50,441,041$ 5,648,670$ 2,610,626$ (5,159,701)$

(1) Beginning with the 2009-10 fiscal year, the District allocated depreciation expense to the various functions.

Source: District Records - Audited Statement of Activities

Fiscal Year Ending


Table 2


154,917,563$ 160,281,144$ 149,605,024$ 130,868,120$ 142,172,487$ 125,637,856$ 15,666,971 15,648,973 14,664,107 13,331,579 14,264,865 13,720,144

4,482,159 4,665,654 4,403,526 4,326,422 4,889,540 4,110,963 6,724,688 6,918,909 6,905,514 6,256,992 6,958,472 4,817,856 5,537,121 4,231,265 4,119,292 1,116,232 2,938,628 2,434,480 4,858,653 4,585,612 4,125,375 4,293,504 4,416,000 2,952,182

776,477 828,837 611,608 907,915 748,707 885,707 802,006 911,113 1,239,831 709,971 683,478 742,817

14,085,674 14,770,442 14,307,319 14,039,344 15,365,892 13,040,280 16,169,015 14,570,383 13,329,194 15,128,959 15,239,267 13,420,809

1,940,256 1,809,452 1,709,074 1,561,967 1,741,933 1,699,941 10,330,383 10,190,739 10,099,703 9,745,406 9,761,921 8,730,423 10,620,862 10,704,206 9,872,040 9,171,157 9,238,846 3,159,311 12,778,049 12,635,262 11,601,230 11,006,462 12,432,170 10,943,331 19,738,298 20,507,802 19,687,578 19,089,150 19,986,510 18,508,657

8,173,519 8,365,885 8,321,679 7,385,181 7,641,627 6,749,947 1,122,670 1,276,100 989,902 615,646 711,975 702,651 3,442,864 3,434,471 3,199,704 2,818,592 3,289,408 3,168,830 6,459,711 6,538,768 5,976,322 6,975,767 7,367,002 6,844,500

- - - 14,732,919 14,985,571 12,098,675

298,626,939$ 302,875,017$ 284,768,022$ 274,081,285$ 294,834,299$ 254,369,360$

979,611$ 928,607$ 774,672$ 667,159$ 735,788$ 679,626$ 6,887,399 6,781,231 6,672,953 6,829,888 6,755,526 6,376,187 7,654,626 7,649,455 6,957,622 6,589,283 6,415,051 7,664,994

687,218 594,259 611,252 584,952 495,869 525,082 3,477,107 3,435,011 3,040,347 2,848,957 3,111,402 2,888,020

11,611,790 11,176,025 10,627,344 10,156,000 9,921,994 9,321,886 1,338,497 3,100,334 4,241,963 10,631,115 39,397,746 59,341,984

32,636,248 33,664,922 32,926,153 38,307,354 66,833,376 86,797,779

(265,990,691)$ (269,210,095)$ (251,841,869)$ (235,773,931)$ (228,000,923)$ (167,571,581)$

117,952,145$ 124,940,872$ 134,871,191$ 135,767,675$ 130,709,363$ 121,464,047$ 1,540 9,358 80,220 3,801,388 3,734,353 3,818,505

27,311,388 28,559,447 32,345,363 41,547,372 47,005,625 42,847,383 - - - - - -

87,959,836 104,710,192 88,050,130 69,913,393 79,285,801 64,070,560 382,110 378,848 658,962 2,944,537 5,686,763 10,902,349

6,533,308 3,696,569 4,199,095 3,647,900 5,374,822 8,140,146 - - - - - -

3,681,097 4,544,296 4,807,778 4,537,295 3,178,166 3,305,455

243,821,424 266,839,582 265,012,739 262,159,560 274,974,893 254,548,445

(22,169,267)$ (2,370,513)$ 13,170,870$ 26,385,629$ 46,973,970$ 86,976,864$

Fiscal Year Ending


St. Johns County School DistrictFund Balances of Governmental Funds

Last Ten Fiscal Years(Modified Accrual Basis of Accounting)

(Unaudited)

Table 3


General FundNonspendable 458,604$ 457,003$ 456,023$ 408,686$ Restricted 736,839 558,519 504,966 411,842 Committed 8,496,499 9,343,316 10,083,976 9,840,195 Assigned 27,589,718 31,916,339 44,866,279 34,230,880 Unassigned 5,802,555 5,954,561 3,719,159 22,533,440

Total General Fund 43,084,215$ 48,229,738$ 59,630,403$ 67,425,043$

All Other Governmental FundsNonspendable 294,285$ 534,025$ 247,117$ 240,416$ Restricted 150,338,131 84,090,387 76,388,394 94,220,308 Assigned - - - 1,985,311 Unassigned (80,160) (245,470) - -

Total All Other Governmental Funds 150,552,256$ 84,378,942$ 76,635,511$ 96,446,035$

Combined Governmental Funds 193,636,471$ 132,608,680$ 136,265,914$ 163,871,078$

Note: The District implemented GASB 54 for the fiscal year ended June 30, 2011. The fund balances from the prior fiscal years were restated for comparison purposes.

Source: District Records - Audited Balance Sheet - Governmental Funds

Fiscal Year Ending


Table 3


417,950$ 405,047$ 348,808$ 320,939$ 274,499$ 269,836$ 432,531 511,686 570,331 936,375 1,079,714 897,941

9,744,667 10,416,995 - - - - 28,212,720 25,867,464 45,520,392 29,089,278 14,942,590 10,578,700 28,197,928 32,160,733 10,926,622 7,966,577 8,384,001 8,161,867

67,005,796$ 69,361,925$ 57,366,153$ 38,313,169$ 24,680,804$ 19,908,344$

115,079$ 135,929$ 153,636$ 124,690$ 152,446$ 166,597$ 64,964,333 87,054,166 86,389,942 92,488,821 90,692,729 141,643,317

1,977,943 3,118,121 2,905,932 2,173,889 1,979,117 2,098,814 - - - - - -

67,057,355$ 90,308,216$ 89,449,510$ 94,787,400$ 92,824,292$ 143,908,728$

134,063,151$ 159,670,141$ 146,815,663$ 133,100,569$ 117,505,096$ 163,817,072$

Fiscal Year Ending


St. Johns County School DistrictFund Balances of Governmental Funds and Entity-Wide Net Position

Last Ten Fiscal Years(Unaudited)

Table 4

$‐

$100,000,000

$200,000,000

$300,000,000

$400,000,000

$500,000,000

$600,000,000

$700,000,000

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Total General Fund Total All Other Governmental Funds Total Net Position

151C

AFR


of 202

St. Johns County School DistrictChanges in Fund Balances of Governmental Funds

Last Ten Fiscal Years(Modified Accrual Basis of Accounting)

(Unaudited)

Table 5

June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013Revenues:Federal Direct 2,012,722$ 2,016,511$ 1,969,171$ 2,063,315$ Federal Through State and Local 15,979,733 16,301,292 16,156,919 16,492,355 State 137,407,516 132,111,564 123,190,493 100,198,339 Local 205,858,156 177,312,413 172,544,842 165,089,569 Total Revenues 361,258,127$ 327,741,780$ 313,861,425$ 283,843,578$

Expenditures: Current:

Instruction 173,713,352$ 166,285,130$ 154,956,534$ 141,722,015$ Pupil Personnel Services 20,146,810 19,163,308 16,575,149 14,384,677 Instructional Media Services 4,678,354 4,596,139 4,428,460 4,099,002 Instruction and Curriculum Development Services 6,036,971 5,986,021 5,370,095 5,881,386 Instructional Staff Training Services 5,593,630 5,577,666 4,970,645 4,126,647 Instruction Related Technology 7,318,543 6,325,529 5,444,025 4,956,272 School Board 1,328,934 1,113,640 948,786 771,199 General Administration 941,696 951,078 950,822 816,256 School Administration 16,501,219 15,676,630 14,283,564 12,540,468 Facilities Services-Non-Capitalized 16,919,645 17,169,829 11,812,811 11,251,810 Fiscal Services 1,977,453 1,754,238 1,789,279 1,690,579 Food Service 10,639,904 10,499,785 10,728,782 10,258,058 Central Services 3,490,984 3,433,160 3,073,100 2,897,297 Pupil Transportation Services 11,975,689 11,936,633 11,753,442 10,957,226 Operation of Plant 21,797,943 21,022,508 20,066,380 18,786,364 Maintenance of Plant 8,199,549 8,217,320 7,798,237 7,376,191 Administrative Technology Services 581,874 673,692 636,452 879,687 Community Services 4,113,841 3,622,644 3,168,268 3,069,720

Capital Outlay:Facilities Acquisition and Construction 10,541,644 4,084,979 36,272,988 12,237,879 Other Capital Outlay 4,163,905 3,498,969 3,880,880 453,923

Debt Service:Principal 14,116,000 13,640,000 13,266,952 20,842,301 Interest and Fiscal Charges 6,028,818 6,439,901 6,563,411 7,119,524


Excess of Revenues over (under) Expenditures 10,451,369 (3,927,019) (24,877,637) (13,274,903)

Other Financing Sources (Uses)Transfers In 25,669,215 25,006,073 24,726,295 26,599,543 Transfers Out (25,669,215) (25,006,073) (27,666,345) (28,593,311) Sale of Capital Assets - - - - Loss Recoveries 103,702 50,088 35,107 97,198 Issuance of Bonds 42,755,000 - - - Issuance of Refunding Bonds - 1,526,000 581,000 - Issuance of Certificates of Participation - - - 33,480,000 Issuance of Refunding Certificates of Participation - 54,845,000 - 9,510,000 Premiums on Issuance of Long-Term Debt 7,717,720 8,563,675 92,853 1,989,400 Payment to Refunding Bonds Escrow Agent - (64,714,978) (496,437) - Discounts on Issuance of Long-Term Debt - - - - Inception of Note - - - -

Total Other Financing Sources (Uses) 50,576,422 269,785 (2,727,527) 43,082,830

Net Change in Fund Balances 61,027,791$ (3,657,234)$ (27,605,164)$ 29,807,927$

Debt Service as a percentage of non-capital 5.99% 6.20% 6.64% 9.83%expenditures

Source: District Records - Audited Statement of Revenues, Expenditures, and Changes in Fund Balance

Fiscal Year Ending


Table 5


2,063,113$ 1,712,363$ 1,376,428$ 1,275,641$ 1,209,942$ 1,301,809$ 15,880,593 33,614,193 27,569,835 11,826,076 12,493,112 11,716,499 82,819,288 83,219,037 71,329,746 76,914,992 116,185,892 109,563,034

167,774,751 173,884,147 187,965,821 202,685,296 206,249,296 200,408,866 268,537,745$ 292,429,740$ 288,241,830$ 292,702,005$ 336,138,242$ 322,990,208$

136,589,812$ 143,683,378$ 133,854,033$ 129,575,728$ 133,557,842$ 120,173,738$ 13,605,240 13,783,619 12,996,768 13,187,850 13,326,955 13,063,236 3,902,185 4,128,627 3,903,255 4,281,330 4,583,153 3,916,676

5,854,593 6,087,616 6,106,328 6,187,576 6,497,000 4,587,743 4,851,618 3,780,661 3,679,990 1,108,092 2,811,791 2,367,221 4,447,798 4,192,252 3,751,307 4,260,340 4,204,676 2,842,737

732,108 788,653 573,530 904,656 728,090 870,942 758,688 868,489 1,199,390 706,321 657,397 724,347

12,234,529 13,012,941 12,641,011 13,881,588 14,331,557 12,402,502 15,994,499 14,342,022 13,174,859 15,116,225 15,165,735 13,373,560 1,708,202 1,613,804 1,528,169 1,545,942 1,635,757 1,627,536 9,589,834 9,566,283 9,448,373 9,693,286 9,431,101 8,519,479 2,569,821 2,703,091 2,609,331 2,557,018 2,658,847 3,054,051

10,803,374 10,797,519 10,047,099 9,805,216 10,803,093 9,734,120 18,360,752 19,305,767 18,590,272 18,995,645 19,402,740 18,137,880 7,365,550 7,617,122 7,614,377 7,325,763 7,273,202 6,515,624 1,081,440 1,238,683 916,162 611,482 693,319 688,400 3,027,835 3,062,495 2,816,474 2,790,542 3,083,236 3,026,864

22,743,648 17,886,977 8,685,616 13,610,315 108,363,419 112,923,411 492,267 809,813 967,603 570,186 851,637 1,436,939

11,029,112 10,586,055 14,038,124 13,540,314 13,652,969 14,633,898 6,500,662 6,592,354 6,541,271 6,975,767 7,418,452 8,617,298

294,243,567 296,448,221 275,683,342 277,231,182 381,131,968 363,238,202

(25,705,822) (4,018,481) 12,558,488 15,470,823 (44,993,726) (40,247,994)

25,821,616 25,403,957 24,532,439 39,084,717 27,406,702 25,480,425 (25,821,616) (25,403,957) (24,532,439) (39,084,717) (30,206,702) (25,480,425)

2,350 - 28,039 1,641 - - 95,531 79,374 3,619 123,009 5,300 1,113

- 740,000 560,000 - 1,425,000 520,000 320,000 - 980,000 - - -

- 16,000,000 - - - 145,000,000 - - - - - -

48,683 53,586 108,355 - 51,450 2,218,816 (367,732) - (1,003,470) - - -

- - - - - (446,018) - - 480,063 - - -

98,832 16,872,960 1,156,606 124,650 (1,318,250) 147,293,911

(25,606,990)$ 12,854,479$ 13,715,094$ 15,595,473$ (46,311,976)$ 107,045,917$

6.47% 6.18% 7.74% 7.80% 7.75% 9.34%

Fiscal Year Ending


St. Johns County School DistrictSummary of Revenues, Expenditures (by Major Object), and

Changes in Fund Balances - General FundLast Ten Fiscal Years

(Modified Accrual Basis of Accounting)(Unaudited)

Table 6

June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013Revenues:

Federal Direct Sources: Reserve Officer Training Corps (ROTC) 212,987$ 222,452$ 241,660$ 238,907$ Miscellaneous Federal Direct - - - 40,830

Total Federal Sources 212,987 222,452 241,660 279,737

Federal Through State and Local Sources: Other Federal Through State and Local Sources 27,950 - - -

State Sources: Florida Education Finance Program (FEFP) 87,370,832 81,016,794 71,697,891 55,976,610 Class Size Reduction 38,373,022 37,283,259 35,491,525 34,429,631 Transportation - - - - Instructional Materials 2,963,504 - - - Other Restricted State Sources 3,854,322 8,221,879 7,506,071 8,085,317 District Discretionary Lottery Funds - 125,216 328,168 - CO&DS Withheld for SBE/COBI Bonds 20,889 20,160 18,865 18,468 Other State Sources 2,733,176 263,396 688,770 277,634

Total State Sources 135,315,745 126,930,704 115,731,290 98,787,660

Local Sources: Ad Valorem Property Taxes 121,875,344 113,363,873 110,543,223 109,605,170 Investment Income 331,801 166,706 186,513 186,552 Other Local Sources 11,879,712 10,736,067 9,784,688 9,841,714

Total Local Sources 134,086,857 124,266,646 120,514,424 119,633,436

Total Revenues 269,643,539 251,419,802 236,487,374 218,700,833

Expenditures: (by object)Salaries 171,430,899 163,853,801 153,027,950 138,752,008 Employee Benefits 61,654,503 56,119,308 50,165,202 43,147,301 Purchased Services 24,977,487 24,142,444 22,121,988 22,572,884 Energy Services 6,415,498 7,202,909 7,441,411 6,949,387 Material and Supplies 8,309,090 9,371,862 7,708,894 8,426,609 Capital Outlay 4,824,377 4,819,129 3,599,090 3,239,560 Other Expenditures 4,053,821 3,454,189 3,084,078 2,839,712


Excess of Revenues over (under) Expenditures (12,022,136) (17,543,840) (10,661,239) (7,226,628)

Other Financing Sources (Uses), Net 6,876,613 6,143,175 2,866,599 7,645,875

Net Change in Fund Balances (5,145,523) (11,400,665) (7,794,640) 419,247

Beginning Fund Balances 48,229,738 59,630,403 67,425,043 67,005,796 Adjustment to Fund Balance - - - -

Ending Fund Balances 43,084,215$ 48,229,738$ 59,630,403$ 67,425,043$

Breakdown of Fund BalancesNonspendable 458,604$ 457,003$ 456,023$ 408,686$ Spendable:

Restricted 736,839 558,519 504,966 411,842 Committed 8,496,499 9,343,316 10,083,976 9,840,195 Assigned 27,589,718 31,916,339 44,866,279 34,230,880 Unassigned 5,802,555 5,954,561 3,719,159 22,533,440

Total Fund Balances 43,084,215$ 48,229,738$ 59,630,403$ 67,425,043$

Fund Balance as Percentage of Revenue:Assigned and Unassigned 12.38% 15.06% 20.54% 25.96%Unassigned 2.15% 2.37% 1.57% 10.30%

Source: District Records - Audited Statement of Revenues, Expenditures, and Changes in Fund Balance

Fiscal Year Ending


Table 6


239,518$ 238,825$ 225,262$ 219,716$ 218,109$ 220,638$ 65,292 75,961 94,778 139,100 75,050 135,316

304,810 314,786 320,040 358,816 293,159 355,954

- - - - - -

39,509,811 39,160,640 29,918,368 16,265,160 24,135,211 25,290,894 33,645,694 32,899,241 31,340,215 29,287,515 27,252,286 20,993,265

- - - 7,330,755 7,330,813 6,842,879 - - - 3,035,942 2,934,916 2,943,399

7,891,457 8,292,998 7,960,231 9,921,023 11,335,572 10,228,919 101,503 114,448 83,726 711,932 1,354,797 1,064,346

17,685 17,196 17,024 16,468 16,149 15,340 279,989 302,897 372,749 280,040 1,027,170 1,005,662

81,446,139 80,787,420 69,692,313 66,848,835 75,386,914 68,384,704

117,952,144 124,940,872 134,871,191 135,767,674 130,709,363 121,464,048 201,672 169,759 260,715 978,487 2,295,597 1,741,453

8,581,680 9,286,579 8,636,852 7,595,287 6,419,411 7,309,990 126,735,496 134,397,210 143,768,758 144,341,448 139,424,371 130,515,491

208,486,445 215,499,416 213,781,111 211,549,099 215,104,444 199,256,149

137,453,762 123,883,922 121,206,446 127,588,452 133,067,843 116,315,867 40,156,123 43,858,568 42,253,912 43,246,943 44,229,257 40,772,240 22,193,670 21,419,388 20,252,383 21,864,681 21,955,859 20,096,490

7,365,458 7,334,990 7,126,031 7,666,530 8,304,829 7,454,311 7,166,959 8,402,751 5,903,146 6,775,308 7,750,464 8,351,630 3,236,547 5,865,164 3,682,938 1,688,519 1,715,867 2,199,379 2,591,770 2,556,775 2,412,852 2,457,547 2,208,521 2,049,571

220,164,289 213,321,558 202,837,708 211,287,980 219,232,640 197,239,488

(11,677,844) 2,177,858 10,943,403 261,119 (4,128,196) 2,016,661

9,321,715 9,817,914 8,109,581 13,371,246 8,900,656 9,117,228

(2,356,129) 11,995,772 19,052,984 13,632,365 4,772,460 11,133,889

69,361,925 57,366,153 38,313,169 24,680,804 19,908,344 11,183,455 - - - - - (2,409,000)

67,005,796$ 69,361,925$ 57,366,153$ 38,313,169$ 24,680,804$ 19,908,344$

417,950$ 405,047$ 348,808$ 320,939$ 274,499$ 269,836$

432,531 511,686 570,331 936,375 1,079,714 897,941 9,744,667 10,416,995 - - - -

28,212,720 25,867,464 45,520,392 29,089,278 14,942,590 10,578,700 28,197,928 32,160,733 10,926,622 7,966,577 8,384,001 8,161,867

67,005,796$ 69,361,925$ 57,366,153$ 38,313,169$ 24,680,804$ 19,908,344$

27.06% 26.93% 26.40% 17.52% 10.84% 9.41%13.53% 14.92% 5.11% 3.77% 3.90% 4.10%

Fiscal Year Ending


St. Johns County School DistrictGovernmental Activities Tax Revenues by Source


(Unaudited)

Table 7

Fiscal TotalYear Operational Debt Capital Property Impact Sales

Ending Purposes Service (1) Projects Taxes Fees Surtax (2)

June 30, 2016 121,875,344$ -$ 31,911,983$ 153,787,327$ 14,768,255$ 8,791,558$ June 30, 2015 113,363,873 - 29,106,294 142,470,167 10,874,315 N/AJune 30, 2014 110,543,223 590 27,436,618 137,980,431 14,353,236 N/AJune 30, 2013 109,605,169 161 26,586,165 136,191,495 11,252,793 N/AJune 30, 2012 117,952,145 1,540 27,311,388 145,265,073 6,533,308 N/AJune 30, 2011 124,940,872 9,358 28,559,447 153,509,677 3,696,569 N/AJune 30, 2010 134,871,191 80,220 32,345,363 167,296,774 4,199,095 N/AJune 30, 2009 135,767,674 3,801,388 41,547,372 181,116,434 3,647,900 N/AJune 30, 2008 130,709,363 3,734,353 47,005,625 181,449,341 5,374,822 N/AJune 30, 2007 121,464,047 3,818,505 42,847,383 168,129,935 8,140,146 N/A

(1) The final payment for the General Obligation Refunding Bonds, Series 2003, was made on December 1, 2009. The collection of delinquent property taxes received in subsequent years related to this debt were to satisfy prior years' unpaid taxes.(2) A one half-cent local sales surtax was voted in by the citizens of St. Johns County effective January 1, 2016, for a period of ten years.

Source: Audited Statement of Activities

Property Tax


St. Johns County School DistrictAssessed and Estimated Actual Value of Taxable Property


Table 8

Total Estimated Ratio ofFiscal Personal Centrally Total Direct Actual Assessed toYear Residential Commercial Industrial Other Total Property (2) Assessed (3) Taxable Value Rate (4) Values (5) Actual Values

2015-16 18,661,845,889$ 1,833,884,423$ 269,876,387$ 484,502,489$ 21,250,109,188$ 743,519,629$ 31,909,281$ 22,025,538,098$ 7.2280 28,823,781,972$ 76.41%

2014-15 N/A N/A N/A N/A 19,375,395,555 706,397,144 30,734,931 20,112,527,630 7.3420 25,732,438,120 78.16%

2013-14 N/A N/A N/A N/A 18,184,098,691 695,055,988 23,129,846 18,902,284,525 7.5440 24,103,300,375 78.42%

2012-13 N/A N/A N/A N/A 17,593,945,549 695,545,687 21,844,470 18,311,335,706 7.6830 23,281,282,992 78.65%

2011-12 N/A N/A N/A N/A 17,998,416,825 717,828,512 25,197,373 18,741,442,710 7.9790 24,121,331,116 77.70%

2010-11 N/A N/A N/A N/A 18,861,886,431 762,436,149 24,253,580 19,648,576,160 8.0690 25,496,837,638 77.06%

2009-10 N/A N/A N/A N/A 20,902,052,307 794,162,750 27,277,134 21,723,492,191 7.8010 28,933,068,224 75.08%

2008-09 N/A N/A N/A N/A 23,719,424,896 793,061,691 36,282,262 24,548,768,849 7.4800 34,409,074,432 71.34%

2007-08 N/A N/A N/A N/A 23,759,696,150 869,659,215 26,540,132 24,655,895,497 7.5610 35,482,347,920 69.49%

2006-07 N/A N/A N/A N/A 21,276,679,826 831,854,254 23,410,747 22,131,944,827 7.6690 31,890,615,563 69.40%

(1) Real property is required to be reported by major component beginning with the 2014-15 fiscal year.

(2) Personal property values are net of certain allowable exemptions, primarily for government property.

(3) Centrally assessed property is primarily railroad property and private car line property, which must be separately assessed.

(4) Tax rates are per $1,000 of assessed value.

(5) Estimated actual values are the total "just" values of property subject to taxation, as defined by Section 193.011, Florida Statutes.

Source: St. Johns County Property Appraiser's Office, Department of Revenue and District Records

Taxable Assessed Value

Real Property (1)

157C

AFR


of 202

St. Johns County School DistrictProperty Tax Rates

Direct and Overlapping GovernmentsLast Ten Fiscal Years

(per $1,000 Assessed Valuation)(Unaudited)

Table 9

2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07Direct

St. Johns County School DistrictGeneral Fund (Required Local Effort) 4.9800 5.0940 5.2960 5.4350 5.7310 5.5710 5.3030 5.1110 4.9320 5.0310General Fund (Discretionary) 0.7480 0.7480 0.7480 0.7480 0.7480 0.9980 0.9980 0.6190 0.6290 0.6380Debt Service Fund 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.1620 0.1600 0.1800Capital Projects Fund 1.5000 1.5000 1.5000 1.5000 1.5000 1.5000 1.5000 1.7500 2.0000 2.0000

Total School District 7.2280 7.3420 7.5440 7.6830 7.9790 8.0690 7.8010 7.6420 7.7210 7.8490

OverlappingBoard of County Commissioners

General Fund 5.1475 5.3900 5.3900 5.3900 5.2900 4.9000 4.8000 4.2900 4.2214 4.9275Transportation Trust 0.7100 0.5300 0.5300 0.5300 0.6300 0.6300 0.7300 0.7300 0.7652 0.9000County Health Unit Debt Service 0.0171 0.0171 0.0171 0.0171 0.0171 0.0171 0.0171 0.0171 0.0171 0.0200

Total General County 5.8746 5.9371 5.9371 5.9371 5.9371 5.5471 5.5471 5.0371 5.0037 5.8475Total County-Wide 13.1026 13.2791 13.4811 13.6201 13.9161 13.6161 13.3481 12.6791 12.7247 13.6965

MunicipalitiesCity of St. Augustine 7.5000 7.5000 7.5000 7.5000 7.5000 7.5000 7.5000 6.8232 6.3129 6.6000Town of Hastings 8.5375 8.6000 8.6000 9.2397 8.0000 8.0000 8.0000 8.0000 7.7087 8.0000City of St. Augustine Beach 2.3992 2.3992 2.3992 2.3992 2.3992 2.3992 2.2875 1.8011 1.5864 1.8000St. Augustine Beach Bond 0.5000 0.0800 0.0787 0.0787 0.0787 0.2000 0.5000 0.0000 0.0000 0.0000

Special DistrictsWater Management 0.3023 0.3164 0.3313 0.3313 0.3313 0.4158 0.4158 0.4158 0.4158 0.4620Fire 1.4625 1.4000 1.4000 1.4000 1.4000 1.2000 1.3000 1.0620 1.0954 1.2000Anastasia Mosquito Control 0.1773 0.2450 0.1325 0.1325 0.1325 0.1325 0.1325 0.1325 0.1344 0.1500St. Augustine Airport Authority 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.1697 0.1697 0.1807 0.2055St. Augustine Port, Waterway and Beach District 0.0638 0.0638 0.0638 0.0638 0.0614 0.0614 0.0539 0.0454 0.0454 0.0473Vilano Street Lighting 0.0500 0.0500 0.0500 0.0500 0.0500 0.0500 0.0500 0.0500 0.0114 0.0690St. Augustine South Lighting 0.2100 0.2100 0.2100 0.2100 0.2100 0.2100 0.2100 0.2100 0.1328 0.1580Ponte Vedra Beach MSD 0.3750 0.3750 0.3750 0.3430 0.3430 0.2750 0.2750 0.2750 0.3510 0.3700Florida Inland Navigation 0.0320 0.0345 0.0345 0.0345 0.0345 0.0345 0.0345 0.0345 0.0345 0.0385Summer Haven MSTU 8.5000 8.5000 8.5000 10.0000 10.0000 10.0000 10.0000 10.0000 10.0000 0.0000

Source: St. Johns County Tax Collector

Fiscal Year

158C

AFR


of 202

St. Johns County School DistrictPrincipal Property Taxpayers

Current Year and Nine Years Ago(Unaudited)

Table 10

Percentage PercentageTaxable of Total Taxable of Total

Assessed Assessed Assessed AssessedTaxpayer Rank Value Value Rank Value Value

Florida Power & Light 1 163,648,339$ 0.72% 1 118,959,685$ 0.48%CWI Sawgrass Hotel LLC 2 112,743,091 0.56%Ponte Vedra Corp 3 60,645,054 0.30% 2 110,639,572 0.45%BellSouth Telecommunications 4 42,501,519 0.21% 4 55,322,815 0.23%Life Care Pastoral Services Inc. 5 40,884,038 0.20%St Aug-St Johns Co Airport 6 40,149,140 0.20%Bluegreen Vacations Unlimited 7 35,277,382 0.17%Florida East Coast RY 8 30,109,010 0.15% 10 35,124,408 0.14%Remington FL Investors LLC 9 28,899,400 0.14%CPG Partners LP 10 27,698,858 0.14%South Jacksonville Properties 3 68,595,313 0.28%St. Joe Corporation 5 55,138,334 0.22%CW Twin Creek LLC 6 52,953,280 0.22%RQB Resort LP 7 49,909,668 0.20%Ring Power Corporation 8 46,268,656 0.19%Sonoc Company 9 38,599,795 0.16%

Total Principal Taxpayers 582,555,831 2.79% 631,511,526 2.57%

Total 22,025,538,098$ 97.21% 22,131,944,827$ 97.43%

Source: St Johns County Tax Collector's Office and St. Johns County Property Appraiser's Office

June 30, 2016 June 30, 2007

Fiscal Year Fiscal Year


St. Johns County School DistrictProperty Tax Levies and Collections


Table 11

Total Collectionsto Date

Current Collections inFiscal Total Tax Percent Subsequent PercentYear Tax Levy Collections of Levy Years Amount of Levy

2015-16 159,200,589$ 153,787,327$ 96.60% -$ 153,787,327$ 96.60%2014-15 147,666,178 142,283,108 96.35% 187,059 142,470,167 96.48%2013-14 142,598,834 137,490,154 96.42% 490,277 137,980,431 96.76%2012-13 140,685,992 135,707,925 96.46% 483,570 136,191,495 96.81%2011-12 149,537,971 144,064,894 96.34% 1,200,179 145,265,073 97.14%2010-11 158,544,361 152,664,070 96.29% 845,607 153,509,677 96.82%2009-10 169,464,963 163,492,324 96.48% 3,804,450 167,296,774 98.72%2008-09 183,624,791 179,042,453 97.50% 2,073,981 181,116,434 98.63%2007-08 186,423,226 181,299,700 97.25% 149,641 181,449,341 97.33%2006-07 169,729,885 167,838,287 98.89% 291,648 168,129,935 99.06%

Source: St. Johns County Tax Collector and District Records

of Tax YearCollected to End


St. Johns County School DistrictRatios of Outstanding Debt by Type


Table 12

Sales Tax General State Board Certificates Total Percentage of Fiscal Revenue Obligation of Education of Capital Installment Primary Personal PerYear Bonds Bonds Bonds Participation (2) Leases Purchases Government Income (3) Capita (3)

2015-16 49,700,948$ -$ 4,781,000$ 110,593,294$ -$ -$ 165,075,242$ 1.298% 772.95$

2014-15 N/A - 5,487,000 125,205,953 - - 130,692,953 1.091% 630.02

2013-14 N/A - 6,461,000 135,260,000 - - 141,721,000 1.227% 703.19

2012-13 N/A - 7,035,000 147,790,000 66,952 - 154,891,952 1.449% 789.98

2011-12 N/A - 8,035,000 124,925,000 144,253 - 133,104,253 1.346% 690.19

2010-11 N/A - 8,325,000 135,270,000 218,365 - 143,813,365 1.570% 756.76

2009-10 N/A - 8,160,000 129,210,000 289,420 - 137,659,420 1.387% 738.58

2008-09 N/A 3,830,000 8,155,000 138,795,000 357,543 - 151,137,543 1.689% 828.13

2007-08 N/A 7,545,000 8,670,000 148,040,000 422,857 - 164,677,857 1.975% 935.50

2006-07 N/A 11,185,000 7,700,000 156,950,000 485,476 585,349 176,905,826 N/A N/A

Source:

(1) District Records - Audited Notes to the Basic Financial Statements(2) Restatement of Certificate of Participation balances to include premiums and discounts(3) Total Primary Government Debt divided by Personal Income and Population from Statistical Table "Demographics and Economic Statistics"

Governmental Activities (1)

161C

AFR


of 202

St. Johns County School DistrictRatio of Net General Bonded Debt Outstanding


Table 13

Percentage ofGross Less Net General Net

General Respective Net General Bonded Debt BondedFiscal Assessed Obligation Debt Service Obligation to Assessed Debt PerYear Population (1) Value (2) Bonded Debt (3) Funds (4) Bonded Debt Value Capita

2015-16 213,566 22,025,538,098$ -$ -$ -$ 0.00% $0.00

2014-15 207,443 20,112,527,630 - - - 0.00% 0.002013-14 201,541 18,902,284,525 - 590 (590) 0.00% (0.00)2012-13 196,071 18,311,335,706 - 161 (161) 0.00% (0.00)2011-12 192,852 18,741,442,710 - 1,540 (1,540) 0.00% (0.01)2010-11 190,039 19,648,576,160 - 9,358 (9,358) 0.00% (0.05)2009-10 186,383 21,723,492,191 - 80,220 (80,220) 0.00% (0.43)2008-09 182,504 24,548,768,849 3,830,000 3,801,388 28,612 0.00% 0.162007-08 176,032 24,655,895,497 7,545,000 3,734,353 3,810,647 0.02% 21.652006-07 N/A 22,131,944,827 11,185,000 3,818,505 7,366,495 0.03% N/A

(1) Population from Statistical Table "Demographics and Economic Statistics"(2) Assessed Value from Statistical Table "Assessed and Actual Value of Taxable Property"(3) Includes General Obligation Bonds Only from Statistical Table "Ratios of Outstanding Debt by Type"(4) Restricted for Debt Service - General Obligation Bonds Only from Statistical Table "Government Activities Tax Revenue by Source"

162C

AFR


of 202

St. Johns County School DistrictDirect and Overlapping Governmental Activities Debt

June 30, 2016(Unaudited)

Table 14

Percentage Amount Percentage AmountApplicable to Applicable to Applicable to Applicable to

Debt School Board School Board St. Johns St. JohnsName of Governmental Unit Outstanding of St. Johns County of St. Johns County County County

St. Johns County Board of County CommissionersCapital Improvement Revenue Bonds 29,741,700$ 100% 29,741,700$ Sales Tax Revenue Bonds 127,545,432 100% 127,545,432 Transportation Improvement Revenue Bonds 52,664,471 100% 52,664,471 Other Debt 11,240,264 100% 11,240,264

Subtotal St. Johns County Board of County Commissioners 221,191,867 221,191,867

City of St. Augustine BeachSerial Bonds 4,051,971 16% 636,971 0% -

Subtotal City of St. Augustine Beach 4,051,971 636,971 -

City of St. AugustineRevenue Bonds 23,307,992 Other Debt 175,046

Subtotal City of St. Augustine 23,483,038

Subtotal Overlapping Debt 248,726,876

School Board of St. Johns CountyCertificates of Participation 110,593,294 100% 110,593,294 100% 110,593,294 State School Bonds 4,781,000 100% 4,781,000 100% 4,781,000 Sales Tax Revenue Bonds 49,700,948 100% 49,700,948 100% 49,700,948

Subtotal Direct Debt 165,075,242 165,075,242 165,075,242

Totals 413,802,118$ 165,712,213$ 386,267,109$

Source: Debt outstanding data obtained from each governmental unit's Comprehensive Annual Financial Report dated September 30, 2015.

Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the District. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of theDistrict. This process recognized that, when considering the District's ability to issue and repay long-term debt, the entire debt burdenborne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident,therefore responsible for repaying debt of each overlapping government.

Direct Debt Direct and Overlapping Debt


St. Johns County School DistrictCalculation of Legal Debt Margin on Bonded Debt


Table 15


Assessed Value 22,025,538,098$ 20,112,527,630$ 18,902,284,525$ 18,311,335,706$

Debt Limit on Assessed Value N/A N/A N/A N/A

Voter Approved Debt Limit:

Bonds Payable -$ -$ -$ -$ Less: Amount Available for Debt Service - - - - Debt Applicable to Debt Limit -$ -$ -$ -$

Legal Debt Margin -$ -$ -$ -$

Applicable Debt as a Percentage of Debt Limit 0.00% 0.00% 0.00% 0.00%

Note: The District does not have a legal debt limit. The District is authorized to issue up to the amount of debt approved by the voters of the District. The amount reported as Voter Approved Debt Limit is the outstanding debt from the latest voter approved debt authorization.

Fiscal Year Ending


Table 15


18,741,442,710$ 19,648,576,160$ 21,723,492,191$ 24,548,768,849$ 24,655,895,497$ 22,131,944,827$

N/A N/A N/A N/A N/A N/A

-$ -$ -$ 3,830,000$ 7,545,000$ 11,185,000$ - - - - - - -$ -$ -$ 3,830,000$ 7,545,000$ 11,185,000$

-$ -$ -$ -$ -$ -$

0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Fiscal Year Ending


St. Johns County School DistrictPledged Revenue Coverage


Table 16

SalesFiscal TaxYear Revenue Principal Interest Coverage (2)

2015-16 8,791,558$ N/A N/A N/A

2014-15 N/A N/A N/A N/A2013-14 N/A N/A N/A N/A2012-13 N/A N/A N/A N/A2011-12 N/A N/A N/A N/A2010-11 N/A N/A N/A N/A2009-10 N/A N/A N/A N/A2008-09 N/A N/A N/A N/A2007-08 N/A N/A N/A N/A2006-07 N/A N/A N/A N/A

Source: District Records

The first principal and interest payment of $3,417,810 is due during the 2016-17 fiscal year on October 1, 2016.(2) The additional bonds test requires 1.75 coverage

Sales Tax Revenue Bonds (1)

Debt Service

(1) On February 3, 2016, the District issued Sales Tax Revenue Bonds Series 2016, in the amountof $50,472,720, as authorized by Chapter 212, 1001, and 1013, Florida Statutes, and as authorizedby a resolution of the District School Board, dated January 12, 2016. These bonds were issued tofinance the cost of construction and equipping of a new K-8 school and a new elementary school.


St. Johns County School DistrictAnticipated Capital Outlay Millage Levy

Required to Cover Certificates of Participation PaymentsLast Nine Fiscal Years

(Unaudited)

Table 17

Taxable Total Millage LevyAssessed Principal Interest Annual Lease to Provide

Fiscal Year Valuation (5) Payments (2)(3) Payments (4) Payments 1.00x Coverage (1)

2015-16 22,025,538,098$ 13,410,000$ 8,063,892$ 21,473,892$ 1.016 mills

2014-15 20,112,527,630 12,955,000 5,772,485 18,727,485 0.97 mills

2013-14 18,902,284,525 12,530,000 6,198,795 18,728,795 1.032 mills

2012-13 18,311,335,706 10,805,000 5,634,306 16,439,306 0.935 mills

2011-12 18,741,442,710 11,286,176 6,088,616 17,374,792 0.966 mills

2010-11 19,648,576,160 9,940,000 5,706,546 15,646,546 0.829 mills

2009-10 21,723,492,191 9,585,000 6,063,634 15,648,634 0.75 mills

2008-09 24,548,768,849 9,245,000 6,402,871 15,647,871 0.664 mills

2007-08 24,655,895,497 8,910,000 6,735,924 15,645,924 0.661 mills

2006-07 22,131,944,827 3,535,000 732,641 4,267,641 0.201 mills

(1) Millage rate calculated using 95% of the taxable assessed valuation; 96% beginning in fiscal year 2010-11.(2) The District first issued COPs in November 2005, with the first payment due during the 2006-07 fiscal year.(3) Includes $1,458,944 payment to the Qualified School Construction Bond sinking fund for repayment of outstanding debt.(4) Interest amounts are net of Qualified School Construction Bond Federal interest subsidy.(5) Taxable Assessed Valuation from Statistical Table "Assessed and Estimated Actual Value of Taxable Property"

Note: Capital lease arrangements financed by Certificates of Participation are not considered general obligation debt as no specific property tax levy has been pledged.



St. John County School DistrictDemographic and Economic Statistics


Table 18

Personal Government-wideIncome Per Capita Governmental

Fiscal (amounts in Personal Median Unemployment School Activities Cost perYear Population (1) thousands) (1) Income (1) Age (1) Rate (2) Enrollment (3) Expenses (4) Student (5)

2015-16 213,566 $12,721,968 $58,379 42.6 3.7% 36,240 $336,376,522 $9,282

2014-15 207,443 11,979,102 57,167 42.4 4.0% 34,840 332,402,452 9,541

2013-14 201,541 11,548,948 57,098 42.4 4.8% 33,371 318,006,474 9,529

2012-13 196,071 10,688,203 51,056 42.2 5.8% 32,357 297,384,159 9,191

2011-12 192,852 9,886,029 49,029 42.2 6.8% 31,297 298,626,939 9,542

2010-11 190,039 9,158,117 46,869 42.7 8.0% 30,353 302,875,017 9,979

2009-10 186,383 9,921,862 50,935 42.4 8.7% 29,549 284,768,022 9,637

2008-09 182,504 8,948,447 51,041 N/A 8.5% 28,825 274,081,285 9,508

2007-08 176,032 8,339,380 49,498 N/A 5.0% 27,728 294,834,299 10,633

2006-07 N/A N/A N/A N/A 3.3% 26,356 254,369,360 9,651

Sources:(1) University of Florida, Bureau of Economic and Business Research(2) U.S. Bureau of Labor Statistics (FRED)(3) School Enrollment from Statistical Table "School Building Information & Full-Time Equivalent Enrollment Data"(4) Government-wide Governmental Activities Expenses from Statistical Table "Changes in Net Position - Government-Wide"

Note:(5) Calculated by dividing government-wide governmental activities expenses by student enrollment


St. Johns County School DistrictPrincipal Employers

Current Year and Nine Years Ago(Unaudited)

Table 19

Percentage Percentage of Total County of Total County

Employer Rank Employees Employment Rank Employees Employment

St. Johns County School District (1) 1 4,388 5.64% 1 3,264 2.60%St. Johns County 2 2,577 3.31% 2 2,013 1.60%Flagler Hospital 3 1,800 2.31% 3 1,503 1.20%Northrup Grumman 4 1,100 1.41% 5 968 0.77%Florida School for the Deaf & Blind 5 670 0.86% 7 767 0.61%Ponte Vedra Inn & Club 6 650 0.84% 6 950 0.76%Ring Power 7 630 0.81%PGA Tour/Tournament Players Club 8 620 0.80% 9 625 0.50%Carlisle Interconnect Technologies 9 600 0.77%Advanced Disposal 10 600 0.77%Florida Army National Guard 4 1,300 1.04%Tree of Life 8 636 0.51%Sawgrass Marriott Golf Resort & Spa 10 550 0.44% Total Principal Employers 13,635 17.52% 12,576 10.03%

Total County Workforce 77,813 125,530

(1) Includes full and part-time employees

Source: St. Johns County Chamber of Commerce and District Records

2015-2016 2006-2007

Fiscal Year Fiscal Year


St. Johns County School DistrictSchool Building Information & Full-Time Equivalent Enrollment Data


Table 20

Placed in Square Service Footage Portables Capacity 2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07

Elementary SchoolsJohn A. Crookshank Elementary 1959 88,160 15 880 733 747 676 660 686 653 628 546 504 470Cunningham Creek Elementary 1995 131,196 24 1,094 935 895 813 761 761 789 784 760 804 840Durbin Creek Elementary 2003 137,090 20 1,230 571 522 932 887 1,092 1,043 941 885 797 780W.D. Hartley Elementary 1980 119,106 0 729 681 713 689 654 622 661 644 643 626 605Hickory Creek Elementary 2005 108,556 0 760 621 591 824 793 592 619 636 625 637 659R.B. Hunt Elementary 1955 86,704 8 699 652 662 694 694 693 656 647 604 602 614Julington Creek Elementary 1972 127,121 5 1,118 977 1,016 1,066 1,062 974 975 1,014 1,052 1,030 1,007Ketterlinus Elementary 1924 73,961 1 485 434 441 468 441 476 460 462 484 465 500Otis A. Mason Elementary 1992 79,896 0 669 584 596 573 591 584 543 530 521 555 548Mill Creek Elementary 1991 135,233 8 1,115 1,092 1,015 913 787 1,054 1,038 1,033 903 799 1,319Ocean Palms Elementary 1996 102,998 13 901 830 707 897 817 765 774 813 829 814 789Osceola Elementary 1991 110,278 6 856 616 614 643 668 711 665 657 624 608 631Palencia Elementary 2012 105,244 0 731 703 681 601 536 0 0 0 0 0 0PV/PV Rawlings Elementary (1) 1958 158,511 3 1,387 1,023 1,032 1,311 1,251 1,212 1,152 1,140 1,088 1,088 1,054South Woods Elementary 2005 100,805 6 742 579 576 583 568 570 557 570 599 588 596Timberlin Creek Elementary 2005 129,551 15 1,030 914 918 925 924 916 877 820 797 1,349 1,197Wards Creek Elementary 2007 125,267 12 984 890 896 816 800 756 740 715 688 662 0The Webster School 1959 123,880 2 995 561 572 525 512 577 561 542 551 560 584

Total Elementary 16,405 13,394 13,194 13,949 13,406 13,041 12,763 12,576 12,199 12,489 12,193

Kindergarten - Grade 8 SchoolsLiberty Pines Academy 2008 175,888 20 1,490 1,413 1,375 1,367 1,326 1,243 1,152 1,067 892 0 0Patriot Oaks Academy 2014 166,662 12 1,396 1,342 1,045 0 0 0 0 0 0 0 0Valley Ridge Academy 2014 171,461 20 1,555 1,443 1,084 0 0 0 0 0 0 0 0

Total Kindergarten - Grade 8 4,441 4,197 3,504 1,367 1,326 1,243 1,152 1,067 892 0 0

Middle SchoolsFruit Cove Middle 2001 143,551 10 1,278 1,159 1,232 1,323 1,392 1,449 1,358 1,258 1,269 1,192 1,186Gamble Rogers Middle 1994 127,078 0 904 830 813 835 847 876 870 921 941 897 906Alice B. Landrum Middle 1991 148,128 9 1,125 1,087 1,141 1,293 1,252 1,225 1,168 1,146 1,129 1,124 1,067R.J. Murray Middle 1953 126,022 0 983 704 739 765 752 693 670 639 698 808 874Pacetti Bay Middle 2007 170,155 10 1,260 1,223 1,084 1,044 1,011 956 857 751 674 613 0Sebastian Middle 1991 128,256 0 815 620 622 626 645 669 631 620 647 584 755Switzerland Point Middle 1991 138,741 6 1,005 1,211 1,265 1,256 1,168 960 969 979 1,058 1,195 1,263

Total Middle 7,370 6,834 6,896 7,142 7,067 6,828 6,523 6,314 6,415 6,412 6,051

High SchoolsBartram Trail High (2) 2000 291,178 1 1,970 1,971 1,874 1,718 1,650 1,606 1,547 1,506 1,769 2,589 2,575Creekside High 2008 238,316 18 1,869 1,909 1,876 1,828 1,756 1,632 1,496 1,404 1,005 0 0Pedro Menendez High 2000 216,172 2 1,488 1,321 1,286 1,285 1,313 1,363 1,319 1,385 1,538 1,466 1,462Allen D. Nease High 1980 221,402 24 1,971 1,947 1,778 1,707 1,655 1,580 1,510 1,441 1,578 2,273 2,070Ponte Vedra High 2008 255,308 2 1,584 1,532 1,526 1,513 1,487 1,483 1,439 1,269 922 0 0St. Augustine High 1959 220,598 1 1,805 1,606 1,632 1,600 1,657 1,635 1,574 1,520 1,464 1,588 1,562St. Johns Technical High (3) 1971 223,628 0 N/A 257 212 157 141 143 201 215 241 177 199

Total High 10,687 10,542 10,184 9,808 9,659 9,442 9,086 8,740 8,516 8,094 7,868

Full-Time Equivalent Enrollment Data

170C

AFR


of 202

St. Johns County School DistrictSchool Building Information & Full-Time Equivalent Enrollment Data


Table 20

Placed in Square Service Footage Portables Capacity 2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07

Full-Time Equivalent Enrollment Data

Charter SchoolsThe ABLE School (4) N/A N/A N/A N/A 55 85 102 125 132 156 136 126 128 87First Coast Technical College (5) 1971 278,769 9 1,680 32 25 15 59 54 38 139 146 157St. Augustine Public Montessori N/A N/A N/A N/A 92 59 47 35 0 0 0 0 0 0St. Johns Community Campus (ARC) N/A N/A N/A N/A 31 22 16 10 12 13 0 0 0 0St. Paul School of Excellence (4) N/A N/A N/A N/A 56 60 60 44 0 0 0 0 0 0Therapeutic Learning Center (ARC) N/A N/A N/A N/A 18 13 15 18 16 14 23 11 10

Total Charter 1,680 284 264 255 291 214 221 298 283 295 87

Specialty SchoolsHastings Youth Academy N/A N/A N/A N/A 136 142 152 117 124 213 218 226 177 N/ASt. Johns County Detention Center N/A N/A N/A N/A 0 0 0 0 0 0 0 53 41 N/ASt. Johns Juvenile Residential N/A N/A N/A N/A 96 86 59 64 65 62 51 30 42 N/ASt. Johns Youth Academy N/A N/A N/A N/A 0 6 44 47 45 52 47 0 0 N/ASt. Johns County Jail N/A N/A N/A N/A 2 1 1 1 0 0 0 2 5 N/AGaines Alternative 1924 37,288 0 263 27 38 45 52 48 41 34 29 80 62Transitions (6) N/A N/A N/A N/A 31 30 28 19 19 17 28 24 22 24K8 Virtual N/A N/A N/A N/A 3 4 56 26 34 29 14 8 0 0St. Johns Virtual School N/A N/A N/A N/A 404 206 236 109 75 101 82 67 9 0St. Johns Virtual Instruction N/A N/A N/A N/A 37 44 0 0 0 0 0 0 0 0McKay Scholarship N/A N/A N/A N/A 253 241 229 173 119 93 80 81 63 71

Total Specialty 263 988 798 850 608 529 608 554 520 439 157

Total District 40,846 36,240 34,840 33,371 32,357 31,297 30,353 29,549 28,825 27,728 26,356


(1) Ponte Vedra-Palm Valley Elementary School was constructed and placed in service in 1958. Subsequently a new school, Marjorie K. Rawlings Elementary School was constructed and placed in service in 1992. These two schools were merged into one facility as of July 2008. (2) The 9th grade center at Bartram was added in 2007, figures are included.(3) St. Johns Technical High School is housed at First Coast Technical College. (4) The charter school ceased operations at the end of the 2015-16 school year. (5) First Coast Technical College is a conversion Charter School and currently resides in a District facility.(6) Transitions program is located at Gaines Alternative School.

171C

AFR


of 202

St. Johns County School DistrictNumber of PersonnelLast Ten Fiscal Years

(Unaudited)

Table 21

Ratio ofRatio of Instructional

(3) Students to Personnel toFiscal (1) (2) Support Instructional SchoolYear Instructional Administrative Services Total Personnel Administrators

2015-16 2,428 186 1,774 4,388 14.93 13.052014-15 2,428 186 1,774 4,388 14.35 13.052013-14 2,194 158 1,694 4,046 15.21 13.892012-13 2,051 154 1,533 3,738 15.78 13.322011-12 1,991 143 1,464 3,598 15.72 13.922010-11 1,987 137 1,491 3,615 15.28 14.502009-10 1,856 134 1,459 3,449 15.92 13.852008-09 1,797 131 1,494 3,422 16.04 13.722007-08 1,860 125 1,372 3,357 14.91 14.882006-07 1,757 118 1,389 3,264 15.00 14.89

(1) Classroom Teachers, Guidance/Psychologists, Exceptional Education Teachers, Media Specialists, Other Professional Instructional Staff(2) Principals, Assistant Principals, Deans, Superintendent, Assistant/Area Superintendents, Directors/Managers/Coordinators(3) Bus Drivers/Attendants, Cafeteria, Custodial, Executive/Administrative/Professional, Clerical, Crafts and Services



St. Johns County School DistrictTeacher Base SalariesLast Ten Fiscal Years

(Unaudited)

Table 22

St. JohnsFiscal Minimum Maximum AverageYear Salary (1) Salary (1) Salary (2)

2015-16 $38,000 $66,150 $47,2662014-15 38,000 66,150 47,266 2013-14 38,000 63,250 47,100 2012-13 38,000 63,250 46,127 2011-12 38,000 63,250 46,052 2010-11 38,000 63,250 46,673 2009-10 38,000 63,250 46,370 2008-09 38,000 63,250 47,102 2007-08 38,000 63,250 47,413 2006-07 35,400 61,250 45,032

(1) District Records(2) FDOE Bureau of Education Information & Accountability Services


SINGLE AUDIT SECTION


Federal Reports and Schedules

Report of Independent Auditor Internal Control over Financial Reporting

and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards

Report of Independent Auditor each Major Federal Program and Report

on Internal Control over Compliance Schedule of Expenditures of Federal Awards Notes to Schedule of Expenditures of Federal Awards

Schedule of Findings and Questioned Costs Summary Schedule of Prior Audit Findings – Federal Awards


Report of Independent Auditor on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards

The Honorable Members of the St. Johns County District School Board St. Augustine, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the St. Johns County School District (the “District”) as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our report thereon dated December 2, 2016. Our report includes reference to other auditors who audited the financial statements of the fiduciary funds and the discretely presented component unit, as described in our report on the District’s financial statements. This report does not include the results of the other auditors’ testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the District’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the District's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in the internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.


Compliance and Other Matters As part of obtaining reasonable assurance about whether the District’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.



Report of Independent Auditor on Compliance for Each Major Federal Program and on Internal Control Over Compliance Required by the Uniform Guidance

The Honorable Members of the St. Johns County District School Board St. Augustine, Florida Report on Compliance for Each Major Federal Program

We have audited the St. Johns County School District (the “District”) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the District’s major federal programs for the year ended June 30, 2016. The District’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the District’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the District’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the District’s compliance. Opinion on Each Major Federal Program In our opinion, the District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2016.


Report on Internal Control over Compliance

Management of the District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the District’s internal control over compliance with requirements that could have a direct and material effect on a major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.



Federal Grantor/Pass-Through Grantor/Program Title Catalog of

Federal Domestic

Assistance Number

Pass - Through Grantor Number

Amount of Expenditures (1)

Amount Provided to Subrecipients

United States Department of Agriculture Indirect: Child Nutrition Cluster: Florida Department of Agriculture and Consumer Services: School Breakfast Program 10.553 13002 773,887$ -$ National School Lunch Program 10.555 13001, 13003 4,032,333 Summer Food Service Program for Children 10.559 13006, 13007 105,084

Total United States Department of Agriculture 4,911,304

United States Department of Education: Indirect: Special Education Cluster: Florida Department of Education: Special Education - Grants to States 84.027 263 5,793,920 Special Education - Preschool Grants 84.173 267 123,086 Volusia County District School Board: Special Education - Grants to States 84.027 7754 3,268

Total Special Education Cluster 5,920,274

Florida Department of Education: Adult Education - Basic Grants to States 84.002 191,193 231,662 231,662 Title I Grants to Local Educational Agencies 84.010 212,223,226 3,380,765 Career and Technical Education - Basic Grants to States 84.048 161 463,254 165,461 Education of Homeless Children and Youth 84.196 127 67,101 English Language Acquisition Grants 84.365 102 45,583 Improving Teacher Quality State Grants 84.367 224 574,561 ARRA - State Fiscal Stabilization Fund (SFSF) - Race-to-the-Top Incentive Grants, Recovery Act 84.395 RA111 357,280

Total United States Department of Education 11,040,480 397,123

United States Department of Health and Human Services: Direct: Head Start Cluster: Head Start 93.6 (3a) N/A 1,000,429

Total United States Department of Health and Human Services 1,000,429

Corporation for National and Community Service: Direct: Retired and Senior Volunteer Program 94.002 (3b) N/A 64,629

Total Corporation for National and Community Service 64,629

United States Department of Defense: Direct: Army Junior Reserve Officers Training Corps None N/A 63,194 Air Force Junior Reserve Officers Training Corps None N/A 54,055 Navy Junior Reserve Officers Training Corps None N/A 142,631

Total United States Department of Defense 259,880

Total Expenditures of Federal Awards 17,276,722$ 397,123$

ST. JOHNS COUNTY SCHOOL DISTRICT

SUPPLEMENTARY SCHEDULE OF FEDERAL FINANCIAL

ASSISTANCE PROGRAM EXPENDITURES

For the Fiscal Year Ended June 30, 2016


ST. JOHNS COUNTY SCHOOL DISTRICT Notes to Schedule of Expenditures of Federal Awards

June 30, 2016

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The Schedule of Expenditures of Federal Awards represent amounts expended from Federal Programs during the 2015-16 fiscal year as determined based on the modified accrual basis of accounting. The amounts reported on the Schedule have been reconciled to and are in material agreement with amounts recorded in the District’s accounting records from which the basic financial statements have been reported.

Grant Contingency

The grant revenue amounts received are subject to audit and adjustments. If any expenditures are disallowed by the grantor agencies as a result of such an audit, any claim for reimbursement to the grantor agencies would become a liability of the District. In the opinion of management, all grant expenses are in compliance with the terms of the grant agreement and applicable federal and state law and regulations.

Indirect Cost Rate The District did not elect the 10% de minimis indirect cost rate, but instead used a rate negotiated

with the Florida Department of Education.

2. NONCASH ASSISTANCE – NATIONAL SCHOOL LUNCH PROGRAM

Included in the amount reported for the National School Lunch Program was $537,766 of donated food received during the 2015-16 fiscal year. Donated food is valued at fair value as determined at the time of donation.

3. DIRECT AWARD GRANT NUMBERS

(a) The Head Start grants awarded directly from the Department of Health and Human Services Administration for Children and Families are provided under agreement number 04CH4653-03-00.

(b) The Retired and Senior Volunteer Program grants awarded directly from the Corporation for National and Community Service are provided under agreement number 15SRSFL014


SCHEDULE OF FINDINGS AND QUESTIONED COSTS

FOR THE YEAR ENDED JUNE 30, 2016

Financial Statement Section

Type of auditor's report issued:

Internal control over financial reporting:

Material weakness(es) identified? yes x no

Significant deficiency(ies) identified that are

not considered to be a material weakness(es)? yes x none reported

Noncompliance material to financial

statements noted? yes x no

Federal Awards Section

Internal control over major programs:

Material weakness(es) identified? yes x no

Significant deficiency(ies) identified that are

not considered to be a material weakness(es)? yes x none reported

Type of auditor's report on compliance for

major programs:

Any audit findings disclosed that are

required to be reported in accordance with

2 CFR 200.516(a) yes x no

Identification of major programs:

CFDA Number

Special Education Cluster

Head Start

Dollar threshold used to determine Type A programs:

Federal

Auditee qualified as low-risk auditee for federal

purposes? x yes no


750,000$

84.027/84.173

Name of Program or Cluster

93.600

Part I ‐ Summary of Auditor's Results

Unmodified

Unmodified


SCHEDULE OF FINDINGS AND QUESTIONED COSTS


Part II ‐ Schedule of Financial Statement Findings

This section identifies the significant deficiencies, material weaknesses, fraud, illegal acts, violations ofprovisions of contracts and grant agreements, and abuse related to the financial statements that are requiredto be reported in accordance with Government Auditing Standards.

There were no financial statement findings required to be reported in accordance with Government AuditingStandards.

Part III ‐ Federal Award Findings and Questioned Costs

This section identifies the significant deficiencies, material weaknesses, and material instances ofnoncompliance, including questioned costs, as well as any material abuse findings, related to the audit ofmajor programs, as required to be reported by 2 CFR 200.516(a).

There were no findings required to be reported by 2 CFR 200.516(a).



SUMMARY OF PRIOR YEAR FINDINGS AND CORRECTIVE ACTION PLAN


There were no findings reported in the prior year.


Summary of Prior Year Findings

Corrective Action Plan

There are no audit findings reported in the Schedule of Findings and Questioned Costs for the year ended December 31, 2016; therefore, a Corrective Action Plan is not required.


OTHER REPORTS


Independent Auditor’s Management Letter Honorable Chairman and Members of the St. Johns County District School Board St. Augustine, Florida Report of the Financial Statements We have audited the financial statements of the governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the St. Johns County School District (the “District”) as of and for the year ended June 30, 2016, which collectively comprise the District’s basic financial statements, and have issued our report thereon dated December 2, 2016. We did not audit the financial statements of the discretely presented component unit nor the fiduciary funds; those financial statements were audited by other auditors. Auditor’s Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”); and Chapter 10.800, Rules of the Auditor General. Other Reporting Required by Government Auditing Standards We have issued our Report of Independent Auditor on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards; Report of Independent Auditor on Compliance for Each Major Federal Program and on Internal Control over Compliance Required by the Uniform Guidance; Report of Independent Accountant on Compliance with Local Government Investment Policies; and the Schedule of Findings and Questioned Costs. Disclosures in those reports and schedule, which are dated December 2, 2016, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.804(1)(f)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. No findings and recommendations were made in the preceding annual financial audit report. Financial Condition Section 10.804(1)(f)2., Rules of the Auditor General, requires a statement be included as to whether or not the District has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, the results of our tests did not indicate the District met any of the conditions described in Section 218.503(1), Florida Statutes. Sections 10.804(1)(f)5.a. and 10.805(7), Rules of the Auditor General, we applied financial condition assessment procedures for the District. It is management’s responsibility to monitor the District’s financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same.


Transparency Section 10.804(1)(f)6., Rules of the Auditor General, requires that we report the results of our determination as to whether or not the District maintains on its Web site the information specified in Section 1011.035, Florida Statutes. In connection with our audit, we determined the District maintained on its Web site the information specified in Section 1011.035, Florida Statutes. Other Matters Section 10.804(1)(f)3., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Section 10.804(1)(f)4., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter The purpose of this management letter is to communicate certain matters prescribed by Chapter 10.800, Rules of the Auditor General. Accordingly, this management letter is not suitable for any other purpose.



Report of Independent Accountant on Compliance With Local Government Investment Policies

Honorable Chairman and Members of the St. Johns County District School Board St. Augustine, Florida

Report on Compliance

We have examined the St. Johns County School District (the “District’s”) compliance with the requirements of Section 218.415, Florida Statutes, during the year ended June 30, 2016. Management is responsible for the District’s compliance with those requirements. Our responsibility is to express an opinion on the District’s compliance based on our examination.

Scope

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the District’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the District’s compliance with specified requirements.

Opinion

In our opinion, the District complied, in all material respects, with the aforementioned requirements for the year ended June 30, 2016.



comprehensive annual financial report school district … · 2016-06-30 · comprehensive annual...

Documents